PESTLE And SWOT Analysis Of CUBO Modular Inc.

External Analysis of CUBO Modular Inc.

This report is based on the case study pm CUBO MODULAR INC. which started its operation quite an unplanned way and is primarily based in Manila. Forlales had started the business with some of his friends, Zahra Zanjani and Jacob Echague who are experts in their respective fields such as management in economics and communication technology management. The core idea behind this start-up is to offer cost-effective housing to satisfy the demand for a decent home for the poor people in the Philippines. Within two years, the organization got so much popularity and immense media support, and huge numbers of fan base through social media pages. The main motto of the organization was to remove the slum from the road of the Philippines. The prime focus of the report is to identify the problem of a production unit of CUBO as it has been disrupted by the impact of Covid-19. The report will highlight the external and internal analysis for CUBO to understand the market conditions and think of an alternative solution to scale the production of the organization.

This part of the report will explicitly describe the external and internal market analysis of CUBO MODULAR INC. and this report will discuss the PESTLE and SWOT framework for understanding the external environmental and internal analysis of the organization.

PESTLE analysis specifically stands for political, economic, social, technological, legal, and environmental aspects. Here PESTLE framework will be used to understand the external market situation of CUBO MODULAR INC.

The internal analysis is typically constructed to analyze the internal factors of the organization such as the strengths, weaknesses, opportunities, and threats within the organization’s working culture.

The organization, CUBO MODULAR INC. is just a two years old building manufacturing organization and it has got immense popularity within two years due to its well-designed houses that are made of engineered bamboo and the immense response from its Facebook page campaign received, which exceeded the capacity of the production for the organization. And at the same time, Covid-19 has hit every possible industry very badly and disrupted the situation. The country-wide lockdown had created a shortage of staff not only in the production department but also in the customer service department also got badly affected by the diseases. As a consequence, they failed to fulfill the demand of the customers and even they failed to reciprocate with the customers and stop communicating about the production’s timings and delivery inquiries. The problem here is that what will be the priorities of Forlales to hire new employees and production staff to increase the workforce and also increase the production rate of the organization to meet the demand of the customers. The potential customers get annoyed with the late delivery and installation process. The customers were anxious about their orders and tried to contact them to follow up with their client servicing and they got to know that the order quantity reached 155 only for February. As a result, CUBO lost several potential customers and some of them started bargaining for exchange.

Political Factors

After identifying the underneath problem in the case study of CUBO MODULAR INC. the organization might have two alternative solutions to address the problem that occurred during the high surge of Covid-19. As the current situation is gradually becoming stable, the organization must need think of an alternative solution that can save the brand image and also prevent the organization from future problems. The organization firstly needs to work on its financial support. They can take a loan from the government agencies or the angel investors which is a fundraising organization that invests in a viable business to make it large. And after that, they need to focus on their recruitment policies. They need to hire professional experts for their production department and client servicing department so that it can make the higher production capacity for the organization. The recruitment for client service operations is very much needed for CUBO as they are lagging in reverting to their client due to disruption caused for Covid-19 in the last two years. Another alternative solution can be done by the organization. They can run a campaign about their current changes in the organization and also mention certain promotional offers to gain the customer’s trust and make production accordingly. These solutions are needed for the organization as per the reading from the case study provided on the organization.

Source: Case Study

This graph from the case study is showing the popularity and the level of the fan base of the organization is having in Facebook. So, the alternative option can be suggested that the new campaign on current change in the organization will be gaining response from their customer base and can recover the potential clients to great extent.

After analyzing the case study and the problem faced by the organization, some of the solutions have been mentioned in the above paragraph. The section of the report will briefly discuss the evaluation of each of the solutions and also mention the course of action for this solution to be undertaken. For the very first solution, the organization needs to take participation in different competitions and pitch its business model in front of the investors as earlier. The organization has already participated in the RICS competition and had won the competition with cash prizes of US$ 63000. This kind of competition can help the organization not only to gain prize money but also will help make the brand revive in the international market again. Secondly, they start focusing on increasing the workforce in the organization for different departments. They can give advertisements for different job portal sites and also make advertisements on their website career portal to start hiring new employees for their production department and client servicing role. To meet up to the demand of the production level, they can tie up with partner builders but that might be challenging as the style of management will be different and the conflict management approach will differentiate for both the partners. And thirdly, it is already known that they have a large fan base on their social media pages. They can run a campaign from that page to make people aware of the current changes that occurred in the organization and also make announcements for promotional offers to gain the customer’s attraction again. Forlales also need to determine some other facts such as handling the fixed cost and earning the sales margin by selling each unit of housing to meet this current expenditure to revive the business in the future.

The three solutions that have been suggested can be shown in the implementation template to show the changes and reason for changes and the revision time needed for implementing the changes into the system.       

Conclusion

This report on the CUBO MODULAR INC. has effectively discussed the external and internal environment analysis to understand the scope of the Philippine market and it has been identified that most of the population of the Philippines are working class and the target customer segment for this organization is poor urban people. This report has also produced certain solutions that are very much effective for CUBO to revive from its current situation. And also, the course of action for each plan has been clarified in the essay briefly. Thus, in the conclusion, it can be said that this alternative will be optimum once applied by the organization in its operations.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order