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Executive Summary

Provide a brief summary or overview of the strategy paper,

stating what the business of the company is, the main
results of your analysis and the recommendation strategies.
Should be around 3-5 pages only.

CHAPTER I: Introduction

Background of the company

2002, Thermo Stat Refrigertion and Air-Conditioning, a

single proprietorship firm was created by Michael K. Del
Poso with only 10 employees. Tropical Hut was its first
client.

2003, the firm started to get more clients including

Shopwise, May Bank, Pizza Hut, and Cabalen.

2004, Thermo Sphere Refrigeration and Air-Conditioning

Corporation was established to replace the existing single
proprietorship name into a company.

2005, The firm started to tie up with TESDA (Technical

Education and Skills Development Authority)to get more OJT’s
to render service on the field.
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2006, Jollibee was referred by a friend who formerly

worked as engineer at Red Ribbon. Then on, Jollibee became
its major client which also provides more training
opportunities for its employees.

Late 2008, As the company’s major client, Jollibee

decided to give its branches mostly in Luzon provinces,
region I.

2009 – Present, the company continues to expand,

continues to innovate, and continues to hire more highly
skilled workers to give fast, reliable, and efficient repair
and maintenance to its major clients particularly in Luzon
provincial areas.

Nature of Business
Thermo Sphere Refrigeration and Air-Conditioning
Corporation from its reputable name offers a wide range of
repair and maintenance services starting up with preventive
maintenance of refrigerated equipment, commercial
refrigeration, and air-conditioning unit;
 Installation of air-conditioning unit
 Repair and installation of ice machine
 Repair of commercial refrigeration and air-conditioning
unit
 Repair of walk-In chiller and freezer
 Repair of ventilation system
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 Repair of electrical, plumbing, auger and other civil

works
Offering its very competitive prices for the supply of
equipment and services, thermo Sphere is committed to give
its best to satisfy its clients without compromising quality
and safety.

Current Revenue Size, Profit, and Profitability

------------------
PERCENTAGE--------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------

Major Markets Served

So far, Thermo Sphere is highly confident for building
the trust of its major clients and penetrated its service to
fast food chains (specifically Jollibee and its partners) in
Luzon provincial areas.

Number of Employees
Theremo Sphere has 20 active employees as of today and
majority of which are Lead, Senior, and Junior Technicians.
Apprentices from TESDA are not considered on the count since
they are rendering a required minimum number of hours as
part of their curriculum, paid and given daily allowance as
OJT.
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CHAPTER 2: Research Design and Methodology

Primary sources of data used in conducting this research

came directly from the owner including Financial Statement,
Cash flows, Income statements, and all relevant information.
Secondary sources of data came from internet and company
websites. Substantial information from competitors are
carefully observed and studied to get accurate assessment.

Scope and Limitations

This research is only limited to Thermo Sphere
Refrigeration and Air-Conditioning Corporation and its 3
competitors (Kolcare Refrigeration and Air-Conditioning
Company, ZFG Refrigeration and Air-Conditioning Services,
Dream-Air Refrigeration and Air-Conditioning Services) since
they have the same nature of industry with almost the same
profit, market share, and services offered.

CHAPTER 3: Vision and Mission

VISION

“To be the leading fast food repair and maintenance in Luzon provincial areas b y
providing an excellent AND AFFORDABLE SERVICE” .

TO acquire and increase the numbers of FAST FOOD clients in Luzon provincial
areas by maintaining and constantly abiding the standards set in the industry

MISSION

To be one of the leading fast food repair and maintenance service provider in Luzon
provincial areas.
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Goals and Objectives:

CHAPTER 4: Environmental

The global sales of Air Conditioning System are

projected to reach 137.8 million units by 2020 driven by the
rich mixture of major factors such as global warming ,rising
standards of living and urbanization. A key fall out of the
global climate change phenomenon is the rise of cooling
needs. Demand for the well furnished and provisioned houses
and growing awareness over the importance of indoor air
quality is also generating increased demand for air
conditioning system. Asia Pacific represents the largest
market worldwide, led by China, India and Korea. The key
factors driving growth in the region include rapid
industrialization, technology advancements and falling price
of air conditioning technologies and growth of data centers
server farms and office buildings packed with heat
generating electronic equipment.
Global warming is still one of the unresolved
environmental issues that the world is facing. As it
increases the effect of global warming to mankind, such as
increasing heat temperature that makes the demand for
cooling needs. Imagining the workplace without ventilation
and air conditioning systems that facilitate in regulating
the temperature inside, it adverse affect the working
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condition and the output of the workers. That is why the

management assured the installation of air conditioning
system. To relate this in our daily lives in the household,
enclosed spaces at home like living room and bedroom
requires to have a good ventilation to be comfortable. This
adds the increase of air conditioning system.
Here in the Philippines, in lieu for the demand for air
conditioning system either for household and business
purposes and to support and assist the needs, the government
formulated the Technical Education and Skills Development
Authority (TESDA) an agency the offers free actual training
and seminars in trouble shooting and maintenance of air
conditioning unit. Each individual will be given an
assessment and if competent a National Certificate (NC
II/III) will be issued to them. Aside from satisfying the
needs for air conditioning system in household or business
settings it also generates and helps individuals to earn a
living.
Although air condition system alleviates and satisfies
the cooling needs, it has also effect in our environment. To
regulate and assist the pop up problems and challenges, the
government specifically the DENR (Department of Environment
and Natural Resources) formulates initiatives that regulates
the use of hydro fluorocarbons (HFCs) amid the continued
threat of global warming.
Due to rapid innovation and initiatives of air
condition system suppliers and manufacturers worldwide, they
were able to come up to highly innovative model and units
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that free and more safe to use since it has less content of
ozone – depleting substances.Given that all models and
units are affordable as well. From this initiatives and
innovation,it is forecasted that this industry will continue
to grow and give the demand for cooling needs.
The catch on this scenario is that since we need
cooling system,most of us doesn’t have the skills and
ability to install,repair if troubles pop up and even the
maintenance of this equipment.We need to seek for the
professional help either from our service provider to be
safe and to enure that our equipment will be always in good
condition. This arises the demand for the air conditioning
system repair and maintenance servicing industry.
At present time since everything that we need is just a
click away,seeking for repair and maintenance provider could
more accessible on ON-LINE Platform. To named the few are
sulit.com, olx, and other on line portals that provide this
kind of service. Most of the service provider on line has a
minumum service fee ranges from at least P250.00 to P350.00
depends on how and what the trouble of that certain unit.
Additional charges is expected from the client once the
technician find more complicated troubles of the unit.

Figure 1: Images of some few on line service provider.

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Note: Thermo Sphere’s Service Fee amount (P 330.00) is

computed base from its monthly fee receive from Jollibee
Foods Corporation which is P10,000/mo.

Figure 2: PEST Analysis (Political,Economical,Socio-Cultural and Technological)

for Air-conditioning Industry
PEST Analysis

Political Economical Socio-Cultural Technological

Varieties of Rising standards Manufacturers and
DENR
affordable units are of living and suppliers innovates
formulates
offered in the market urbanization. safer units that
initiatives to
that suit ones needs produce less ozone
alleviate and
and budget depleting substances
regulate the
and consume less
effect of cooling
energy.
units
TESDA offers
program and
hands on
seminars for
more advance
and updated
technical know
how
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CHAPTER 5: COMPANY ANALYSIS

Thermo Sphere Refrigeration and Air-conditioning
Corporation currently connected to Jollibee Foods
Corporation specifically in Region 2 which includes the
province of Appari to Nueva Viscaya as a Repair and
Maintenance (service) provider. They have an exclusive
contract with them and in returns they need to meet the
standards and practices that the Jollibee Food Corporation
sets and of course inclined with the standard of the
government. One of the services that they have offer to
Jollibee Food Corporation is to have a regular check up of
Air conditioning unit and Ventilation. Within the Region 2
areas, Thermo Sphere technicians do the regular visit in the
stores assigned to them and personally check all the units
if it is in good condition. Aside from the regular in store
visit of the technicians, the Jollibee Food Corporation also
provide and give them an access to their SAP System and in
house application that enables them to check if some certain
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stores are needing for their immediate assistance. They have

this in house application where in the Thermo Sphere admin
could view and monitor certain request. To be specific on
this in house application, this is called IMMS LIVE. Thermo
Sphere admin has a username and password to be used to
access this application that the Jollibee Food Corporation
provides. Such as instances one of the Jollibee outlet in
Nueva Viscaya has a trouble in their air condition system,
the store manager will make a IMMS LIVE Repair and
Maintenance Ticket on the in house application. He will just
briefly state the problem and then submit it. Once the
ticket was done, it will appear on the system that enables
the Thermo Sphere admin view such request.
As of the present time,the Thermo Sphere Refrigeration
and Air-conditioning Corporation doesn’t have well organized
organizational structure. In terms of managing the manpower
and staff, they are not well established yet. They only have
18 technicians and 5 office and administrative staffs.
Although from time to time they accept OJT students taking
training of Air conditioning short program from TESDA,the
leverage they get isn’t enough to subsidize the needs of
manpower and technicians to fulfill and assist the demand
from Jollibee Food Corporation.From time to time the TESDA
recommends and endorsed skilled trainees that eventually
became their contractual worker.However they will just
stayed for less than a year and find more greener pasture
abroad as a skilled worker. This scenario have adverse
effect on their operation since TESDA endorsed personnel are
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well oriented and skillful enough in terms of repair and

maintenance of air conditioning system and the like. Aside
from the TESDA programs and seminars,technician of Thermo
Sphere & Air-condition Corporation were given and provided
updated seminars that were facilitated by Jollibee Foods
Corporation that in turns adds updated skills to them in
this field and industry. The leverage and the privileged
that the Jollibee Food Corporation has been provided serves
as a good initiatives and helpful enough for both
parties.This justify that all the technicians as well as the
owner and staffs are so well trained and skillful enough in
terms of air conditioning and other related stuff. However
the challenge of Thermo Sphere is to have a more established
and organized organizational structure. To be able to expand
their horizon and acquire more clients,they need to organize
and form departments that will have a specific jobs and
obligations to be performed since if ever their endeavor
will flourished,they are ready enough to the flow of more
works and concerns that will inevitably pop up in the long
run. Such department for example is to have a Human
Resource Department that will conduct and supervise all
employees as well as find initiatives and programs that will
benefits and sustain the needs of all employee and as well
as to safeguard the interest of all stakeholders. Apart of
having a Human Resource Department,Finance Department is
also essential to have in Thermo Sphere since this is will
monitor and focusing more on the cash and assets of the
organization. As per initial findings of Thermo Sphere,they
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have the capability to expand their horizon and accept more

outlets and store of Jollibee Food Corporation however they
need to give more attention in terms of the circulation of
their income as well as their investment. Since it is
already given that all the technicians are fully skilled and
equipped by skills and knowledge needed to perform the
job,it should have a rigid and keen monitoring and control
in terms of their cash,asset and property. Perhaps updated
actual checking of all assets, acquired expenses and
liabilities as well as find alternatives for such expenses
to avoid overspending. And most of all to monitor the
capital and investments.
From the Income Statement of 2014,2015 and 2016,
it shows it has the competitive advantage since the revenue
increase per year. The income of 2015 increased for almost
5% and the next year having an increase of almost 30%
higher. From income statement it proves that their binding
contract with Jollibee Food Corporation just compensating
them a minimum fee of P 10,000/mo is good enough to sustain
the business and acquire more income depending on their
capacity to accept more Jollibee Food Corporation’s outlet
to be repaired and maintain and from case to case basis
supplied them some needed equipment,tools and even spare
parts with equivalent amount to be added on the initial
agreed monthly dues. The more favorable outlets they served
the more income to have as long as they have the enough
capital to sustain their operations which is this factor was
also essential in acquiring more revenues and profits.
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Fig.3 Sample Thermo Sphere Income Statement for the 3

Consecutive Year (2014,2015 & 2016)
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CHAPTER 6: STRATEGY FORMULATION

SWOT MATRIX

SO Strategies

Strength
S1)Having well skilled workers
S2)Already established business identity in the industry
S3)Competitive Bidding Price
S4)Stable provider-customer relationship
S5)Have been affiliated with a well-known company
 
Weaknesses
W1)Fast manpower turn over
W2)Lack of additional capital and monitoring
W3)Lacks in Marketing Strategies
W4)Lacks in recruitment activities
W5)Lacks in manpower supervision
 
Opportunity
O1)Variety of available innovative units in the market
O2)Increasing high standard of living
O3) More client prefer provider which is referred by
well established business entity.
O4)Gain new knowledge by being active in attending
seminars of new products/units in the market

O5) Free assessment for RACS NCII

 
Threats
T1)With strict government regulations with regards to
environmental concerns
T2)Fast-paced competitors
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SWOT MATRIX
Weighted
Particulars Weight Rating Score
Strength      
S1)Having well skilled workers 0.20 4.00 0.80
S2)Already established business 0.20 4.00
identity in the industry 0.80
S3)Competitive Bidding Price 0.05 3.00 0.15
S4)Stable provider-customer 0.05 2.00
relationship 0.10
S5)Have been affiliated with a 0.10 4.00
well-known company 0.40
Weaknesses      
W1)Fast manpower turn over 0.10 2.00 0.20
W2)Lack of additional capital and 0.15 2.00
monitoring 0.30
W3)Lacks in Marketing Strategies 0.05 2.00 0.10
0.05 2.00
W4)Lacks in recruitment activities 0.10
W5)Lacks in manpower supervision 0.05 2.00 0.10
TOTAL 1.00 3.05

Weighted
Particulars Weight Rating Score
Opportunity      
O1)Variety of available innovative
units in the market 0.2 4.00 0.8
O2)Increasing high standard of
living 0.2 4.00 0.8
O3)More client prefer provider
which is referred by well
established business entity. 0.2 3.00 0.6
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O4)Gain new knowledge by being

active in attending seminars of new
products/units in the market 0.1 2.00 0.2
O5)Free assessment for RACS NCII
0.1 2.00 0.2
Threats      
T1)With strict government
regulations with regards to
environmental concerns 0.1 2.00 0.2
T2)Fast-paced competitors 0.1 2.0 0.2
Total 1.00 3.00

SO Strategies

Strength
S1)Having well skilled workers
S2)Already established business identity in the industry
S3)Competitive Bidding Price
S4)Stable provider-customer relationship
S5)Have been affiliated with a well-known company

Opportunity

O1)Variety of available innovative units in the market

O2)Increasing high standard of living

O3) More client prefer provider which is referred by well
established business entity.
O4)Gain new knowledge by being active in attending seminars
of new products/units in the market
O5)Free assessment for RACS NCII
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SO1.Establish a new target market (S1,S2,S3,O2)

Having a well-skilled workers and established business
identity with a competitive bidding price will be a great
advantage in attracting new target market.

SO2.Highly Skilled Workforce (S1,O4,O3)

Aside from having TESDA accredited manpower, there are
also events / seminar that can utilize them that is
essential for doing their job. With these credentials, new
market may be attracted.
WO Strategies
Weaknesses
W1)Fast manpower turn over

W2)Lack of additional capital and monitoring

W3)Lacks in Marketing Strategies

W4)Lacks in recruitment activities

W5)Lacks in manpower supervision

Opportunity

O1)Variety of available innovative units in the market

O2)Increasing high standard of living

O3) More client prefer provider which is referred by well

established business entity.

O4)Gain new knowledge by being active in attending seminars

of new products/units in the market
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O5)Free assessment for RACS NCII

WO1) Develop Human Resources Team (W1,W4,W5,O3,O4)

The company should be more active in recruitment activities
as well in participating in seminars / events that are
connected to the business. More so, it will also help the
company to supervise employees in all aspects.

WO2) Develop the marketing team (W3,O1,O2)

The company should be updated in the market with
regards to New product launching and must be aggressive in
pin-pointing new possible markets.

WO3) Development of Social Media and Company Website

(W1,W3,W4,O2,O3)
Many people nowadays are more into social media and
internet. The company can make use of the internet in many
aspects like marketing, advertisement, recruitment and
monitoring. It will be a big help for the company by just
being active in this matter.

WO4) Invest in launching of own training center (W1,W4,O3)

Due to numerous seminars that the employees may attend,
the company can create a training center of its own in order
to lessen the struggle in recruitment activities. A good
deal will do for those who want to learn about the industry.

ST Strategies
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Strength
S1)Having well skilled workers
S2)Already established business identity in the industry
S3)Competitive Bidding Price
S4)Stable provider-customer relationship
S5)Have been affiliated with a well-known company

Threats
T1)With strict government regulations with regards to
environmental concerns
T2)Fast-paced competitors

ST1) Adaptability to change (S1, T1, T2)

With a well-skilled workforce, the company can easily
detect what kinds of air conditioner are subjected under the
acts or law that our government is implementing. With these,
the company can also determine the existing and possible
market that can be targeted. Also, with this kind of
workforce is also an advantage among the others.

WT Strategies

Weaknesses
W1)Fast manpower turn over
W2)Lack of additional capital and monitoring
W3)Lacks in Marketing Strategies
W4)Lacks in recruitment activities
W5)Lacks in manpower supervision

Threats
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T1)With strict government regulations with regards to

environmental concerns
T2)Fast-paced competitors

WT1) Invest in Manpower Compensation (W1,T1,T2)

The company should invest in employees who are more
knowledgeable about the industry. In this case, the company
can prevent losing a valuable asset which could help them to
be updated and can go with the flow of the fast-paced
competitors.

Chapter 7: Strategic Objectives and Recommendation

Strategies
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