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Question: Right Ideas Craft Corporation is engaged in manufacturing high quality furniture. They sell products here and abroad. Most of the products are being displayed in malls where the company entered into a Lease Contract for the use of the space. They also owned a showroom just beside their factory. They are also engaged in E-commerce where a website is being maintained and customers can order online. The raw materials for their products are sourced mainly from the various parts of the country and most of the their furniture designs are taking inspiration from everything around us. Some of their best seller designs include that of a wavelike chairs, chairs blossom outward forming supple cascades of petals, furniture resembles a coral reef, throne-like red chairs and more. With the pandemic crisis that the whole world is experiencing, RICC Corporation had a difficulty in exporting their products abroad. Much more challenge has been placed upon them in the disposal of their products in the Philippines because of the Covid-19 restrictions that the government is implementing not to mention the difficulty in the acquisition of raw materials which was even more difficult because of the constant change in the alert level system of each place which make the transport of raw materials even more difficult. With the present status of the firm, where sales are declining, expenses are increasing and employees are leaving the company since they could not afford anymore to give the salary that is due to them. If this situation will not be given an immediate action, this will lead to the closure of the firm. The Board of Directors of the corporation convened to address the issues that the company is facing. They are to craft and implement an aggregate plan to counter the effects of Covid-19 in their operation and in the company in general.
Assumed you are one of the consultants in the company, and you are asked to develop an aggregate plan. The BOD knows that an active or passive aggregate planning approach can be implemented to solve the problem. They require you to list down the active and passive strategies citing therein the concrete actions you would like to advice them.
Analyzing the external environment or external analysis is the process of assessing and interpreting the information gathered through environmental scanning. Managers must monitor and scan the environment as well as analyze competitors. Such information is critical in determining the opportunities and threats in the external environment. Understanding the current state of the marketing environment and recognizing threats and opportunities arising from changes within it, helps companies with strategic planning. The external environment includes six forces
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