Local partnership:
PARTNERSHIP
Background
On July 10, 1931, the company was incorporated Ortigas, Madrigal y cia., S. en C. as a limited partnership by shares
(sociedad comanditaria por acciones). The parties to the partnership were Francisco Ortigas (Don Paco), Vicente Madrigal, B.C.M. Johnston, Fulgencio Borromeo, Clyde A. Dewitt and Manuel L. Quezon.
Background
When Ortigas & Company took over management of the estate, it was a virtual wasteland. It was the vision of the management team, headed by Atty. Francisco Ortigas, Jr., who was President and Chairman at that time that transformed this wasteland into a progressive industrial, commercial, and residential urban complex.
The objective of the partnership was to acquire the
Hacienda de Mandaloyon, which spanned the municipalities that are now known as Mandaluyong, San Juan, Pasig & Quezon City. The Estate was to be disposed of either in large tracts or developed subdivided lots.
OCLP
Where wild grass used to grow now stands the following:
... residential subdivisions (Barranca, Capitol, Wack-Wack, Greenhills, Valle Verde, Greenmeadows) ... shopping complexes (Greenhills Shopping Center, Tiendesitas at Frontera Verde, SM Megamall, Robinsons Galleria, EDSA Shangri-La Plaza)
... hospitals (The New Medical City, Rizal Provincial Hospital, Cardinal Santos Medical Center)
... schools (De La Salle - Greenhills, Xavier School, Immaculate Conception Academy, Lourdes School, St. Pedro Poveda College, St. Paul College) ... churches (Santuario de San Jose, Mary The Queen, St. Francis, Our Lady of Peace Parish / EDSA Shrine) ... army camps (Camp Crame, Camp Aguinaldo, Rizal PC Headquarters) ... exclusive golf and country clubs (Valle Verde Country Club, Green Valley Country Club, Wack-Wack Golf and Country Club)
The Current Portfolio of Ortigas & Company, Limited Partnership
PROJECTS
Greenhills Shopping Center
Greenhills Shopping Center is a shopping
center in the city of San Juan in the Philippines.
Tiendesitas
Tiendesitas is a premier shopping and
family entertainment destination in Pasig City, which is owned by Ortigas & Company.
Circulo Verde
Circulo Verde is a 12-hectare master-
planned development that combines all living essentials in a contained community.
Frontera Verde
Frontera Verde is an interim 18.5 hectare development project at the corner of Ortigas Avenue and E. Rodriguez Jr. Avenue (C-5) in
Barangay Ugong, Pasig City. Its anchor locator is Tiendesitas, which is owned and managed by Ortigas & Company. Other locators in Frontera Verde are SM Hypermarket, Fun Ranch, Ark Avilon, Transcom Center, Silver City, and Shell Gas Station.
Luntala Valle Verde
Luntala is a 77-unit residential townhouse development located along Firefly Street, inside Valle Verde 6-A. Two major road arteries, the Ortigas Avenue and the Green Meadows Avenue, bound it.
OCLP
Vision / Mission
To Be the Preferred Partner for Value-Driven Real Estate Ventures Core Values Customer Satisfaction Creativity Excellence Loyalty Integrity Teamwork Employee Satisfaction
Mission
Our partnership aims to lead the real estate ventures industry in providing our clients with the optimal quality of daily living from the finest middle to upscale residential and commercial spaces located within or proximate to Manilas major business districts. Our ventures are conceived, designed and developed from continually researched innovation, state of the art technology and structural engineering and construction by a team of men and women dedicated to excellence and committed to service. No less than industry leaders from all over, oversee every aspect of the business from concept to design to construction. And while Ortigas & Company, Limited Partnership looks ahead to the next decade to become the industry leader, it also commits itself to being an active partner of the Filipino community in nation building through the Ortigas & Company Foundation.
INTERNAL ASSESSMENT
Internal analysis
Strengths :
Established their name on real estate developments through time Funds are available for future projects The workforce abides by the core values
Weakness :
Priced at a premium
Management Audit
Managers exercise their authority effectively.
Companys objectives and goals are
measurable and well communicated. Employee morale is high.
Marketing Audit
The product quality and customer service is good.
The firms marketing managers have
adequate experience and training. The firm has an effective sales organization.
Finance/ Accounting Audit
The firm can raise both needed short-term and long-term capital.
They have sufficient working capital.
The firms financial managers are well capable.
Production/Operations Audit
The facilities, resources, and markets are accessible to private schools, hospitals, churches, post offices, police stations, ample
water supply, plus private sports and social clubs.
Research & Development Audit
The partnership performs their Research and Development facilities are at their discretion. House designs are in line with the new trends Continuous research/study for new knowledge and information on what styles of housing would be appealing to the potential
customers
Management Information System audit
has tapped the technology of SAP to boost its operations and to aid its 10-year expansion plan to put the company at par with its
competitors. the company would be able to efficiently store and manage its entire database and improve operational efficiency. SAP, the world's leading provider of business software solutions.
External analysis
Economic forces
Inflation as prices of raw materials increase, the cost of construction and selling price increases as well. The budget for housing decreases as consumers are prioritizing basic necessities
Income sales are affected by the purchasing power of the target market. nowadays, a larger margin of the market can afford medium to upscale housing
Social, Cultural, Demographic, & Environmental
Lifestyle manner of living of a person
Consumer behavior when, why, how and where people would buy
Population number of people in the market Philippines: 92 million
Age bracket what would cater to different generations * Generation Y
Political, Government, & Legal
Tax rates
-
Capital gains tax imposed by the government for the sale of an immovable property capital gain tax :6%
- Articles of Limited Partnership must be filed for record in the Office of the Securities and Exchange Commission.
Technological
Internet selling real estate properties are made easy through online Advertisements / transactions.
Competitive
Many developers enter
the market with promising projects
Too many real estate for
sale
Cheaper prices by the
competitors
SWOT MATRIX
Strengths
S: Easier access to mortgage, long tenure loans
Weaknesses
W: Priced at a premium
Opportunities
O: Large amount of potential buyers = Market penetration S: Established their name on real estate developments
O: Shortage on housing
= Backward integration
T: many strong competitors W: sluggish market expansion = Market penetration
Threats
T: Too many competitors = Market development
STRATEGY IMPLEMENTATION
Strategy:
1. Backward Integration
Produce their own raw materials.
2. Market Penetration
Increase sales persons Use different types of media promotions eg.
Television, radio, magazines
STRATEGY IMPLEMENTATION
Strategy: 3. Market development
Expand/branch out their business to other geographic
areas
Management
Since the first strategy that they should implement is market penetration, it will not require any organizational structure changes
Finance / Accounting
- Tie-up with financially ailing Fil-Estate whose vast
interests are primarily in South Manila, specifically Muntinlupa area(this also is a financial strategy because it becomes a joint investment) capture the emerging viable market of young financially enabled buyers from the BPO industry
- Harp on lighter mode payment scheme to be able to
Marketing
Aggressively pursue emerging markets from the BPO and the newly enabled families of the OFW's
-by entering into joint ventures with interested members of the industry operating in other geographic areas -by exploring markets outside metro manila
Production/Operations
We will have a cost-cutting by producing our
own raw materials
Research and Development
They should improve their I.T department for
R&D
Management Information Systems
TECHNOLOGICAL IMPROVEMENT:
Ortigas & Co. Modernizes Operations with
SAP and BT Properties developer BayanTrade to improve on operational efficiency and the ability to maintain a centralized database.
STRATEGY EVALUATION
CONSONANCE
Strong economic foundation of the business
STRATEGY EVALUATION
ADVANTAGE
Theyve been in the industry for more than a decade that enable them to compete with other larger firms. The company enjoys a good strong image In the industry and in the public The company presently operates in a site proximate to one of the strongest expanding business districts (right now, BPOs are growing in presence in the are)
STRATEGY EVALUATION
CONSISTENCY
Their projects are consistent with the firms goals by continuous real estate developments
STRATEGY EVALUATION
FEASIBILITY
The firm is able to pursue its objectives through their strengths and opportunities in the industry.
Measuring Organizational Performance
OCLP was able to achieve their plans with their previous projects such as the Greenhills Shopping Center and Serendra
Taking corrective actions
The existing strategy of OCLP which is product development should be retained at the same time implement market
penetration and market development
Contingency Planning
Develop an aggressive marketing concept to be offered directly to middle and upper management of BPO's (call center) through
group presentations.
Conclusion/Recommendation
The initial development strategy was two pronged : (1) develop industrial properties and allow subdivisions and community
facilities to emerge around it; and (2) focus on elite motivation: first class homes made attractive by a modern and accessible amenities like private schools, hospitals, churches, post offices, police stations, ample water supply, plus private sports and social clubs.
Our Conclusion/Recommendation
Our formulated strategies are: (1) To develop Market Penetration by increasing sales persons , (2)To implement Market
Development by expanding their business to other locations and (3) To produce their own raw materials through Backward Integration.
Ortigas & Company, Limited Partnership looks forward to 2021, the centennial year of the company, 100 years of sustained growth and landmark achievements in the real estate industry. And, we dream now of where we will be in the next hundred years. We dream of every Filipino reaping the benefits of the life he worked and aspired for and a nation that has become a major world player and not the largely deprived society that it is touted now to be. Ortigas & Company will be a strong driving force in the achievement of those dreams.
The past year , this year and,
most likely until the next year are trying times for all of us. On top of our own struggle in our own economic problems, the present scenario is beleaguered by global events. But, this is the opportune time for Ortigas &Company, Limited Partnership to adapt, innovate and forge ahead while not forgetting its commitment to the Filipino nation.
