Unicon Operation Strategy Essay

2178 Words Oct 30th, 2012 9 Pages
Executive Summary
The Government of the Peoples Republic of China (PRC) in 1997 introduced a housing project with the intention of creating an opportunity for affordable housing in Hong Kong (HK). Hong Kong was recognized as having one of the most important ports in the country with a growing middle class. The project would cover a 90 block radius by 1998.
Unicon, given an opportunity to complete this project for the PRC, faced a big challenge. The capacity of the project was 90 blocs. The company has only been able to complete a 7 block per year radius. The total capacity of the industry itself was 20 blocks per year.
Demand for 2 of its 4 products - precast concrete facades & slabs, which are in current production, is in high
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Highly Competitive Market
The current high level of demand for construction materials is attracting new entrants in the industry. We expect to see 5 new firms enter this highly successful market. “Currently regulations restricted the manufacture of facades and slabs for HKHA projects to production facilities located in Hong Kong. However, the regulations were being revised to permit firms in the PRC to supply these. This revision was expected to take place by 1998” (Source: Unicon Case Report, P.4) increasing the overall competition in the marketplace.

ROOT CAUSE ANALYSIS

Unicon has few major products but the products that we produce have a high volume (see Appendix 1). These products – stairs, facades/slabs and partitioning walls – are presently running at different stages in the life cycle. Within Unicon, facades and slabs are predicted to grow much faster than partitioning walls (see Appendix). We will review our positioning in greater detail throughout this report.
We have also considered the strengths, weaknesses, opportunities and threats that contribute to the qualitative and quantitative root cause and environmental analysis (See Appendix).

QUALITATIVE

People: Opportunity for a Re-Elected

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