DMCI Holdings, Inc.

Christialyn Q. Quiñonez
Febe Hyacinth A. Simbolas
Jashmin S. Cosain
 PART 1

TEN CRITICAL DECISIONS IN

OPERATIONS MANAGEMENT
OF DMCI HOLDINGS, INC.
1. DESIGN OF THE GOODS & SERVICES

When it comes to design of goods and services, the DMCI Holdings, Inc. rub
in constant management techniques wherein they can guarantee that its services
and equipment used in processes were good enough to produce huge and
valuable products. Its capability to construct a wide variety of projects, has
investments in various construction business-generating activities, to take equity
positions in ventures, primarily to carry on the business, it also plans to provide
power to leading industrial corporations across the country and it is the water and
waste water service provider. Construction, Residential Development, Mining,
Power and Water services were based on a high quality services offered to target
markets and competitive actions towards the other competitors.
 2. MANAGING QUALITY
In this strategic decision part, DMCI Holdings, Inc. always aims to build
quality projects that serve as milestone in the struggle of humanity for their
better structures. The company also manage their businesses in accordance
with relevant government standards on environment, safety, quality and
corporate governance practices. The entity’s mission is to invest in
engineering and construction-related businesses that bring real benefits to
people and the country. DMCI Holdings, Inc. high quality
engineering/construction services proves the effectiveness in this strategic
decision area of operation management.
 3. PROCESS AND CAPACITY DESIGN
Process productivity, capacity operation, and cost effectiveness are among the main
concerns in this strategic decision area of operations management. DMCI Holdings Inc.
uses a decentralized approach to product sourcing. Responsibility centers who are
responsible in entity’s investment, profit, costs, revenues and other services, making
the company work efficiently and effectively. DMCI Holdings Inc. is committed to
doing business in accordance with the highest professional standards, business conduct
and ethics and all applicable laws, rules, and regulations in the Philippines. DMCI
Holdings Inc., directors, officers, and employees are dedicated to promote and adhere
to the principles of good corporate governance by observing and maintaining its core
business principles of accountability, integrity, fairness, and transparency.
 4. LOCATION STRATEGY
The DMCI Holdings Inc. addressed this strategic decision range
management through numerous places in rural and urban. Maximum of the
holdings are in the urban areas in which many people can use. Each
subsidiaries of DMCI Holdings, Inc. has independent websites. Taking full
advantage of its location strategy through using their websites to reach the
target market for the increase of the sales.
 5. LAYOUT STRATEGY
Applying this strategic decision area of operations management requires a great
skill, passion and dedication. And that was DMCI Holdings, Inc. continue to quest
in attaining engineering excellence in quality homebuilding and community
development, that shall endure generations. Advanced Construction Technology is
used on the layout design for completing technologically complex projects on or
ahead of schedule. The employees, contractors and especially the engineers had an
expertise and professionalism to build hundreds of landmark infrastructures around
the country. DMCI has earned a reputation for on schedule delivery and quality
work. It is proven that the layout design of the company is very innovative and
productive to build a high quality infrastructures even on or ahead of schedule.
 6. HUMAN RESOURCE & JOB DESIGN

DMCI Holdings Inc. address these strategic decisions area of operations

management by engaging and retaining their employees through investing in
skills development and career opportunities and pursue businesses with
unrealized value that could be unlocked through innovative engineering and
management. The company manage to have employees with
professionalism, knowledge and pure dedication to their work. But all in all,
the top executives in the different subsidiaries has a great expertise in
management in order to formulate an effective strategic decisions.
 7. SUPPLY – CHAIN MANAGEMENT
DMCI Holdings’ supply chain management is well-balanced and very effective to their target
market. Maynilad Water Services has an effective supply chain strategy because aside from
delivering potable water,  it also provides sewerage services to its customers. Maynilad aslo
have Supply and Pressure Management to optimizes pressure in the distribution and supplying
system using pressure regulating valves and/or pumping stations. DMCI Mining Corporation
has a supply chain strategy through implementing some cost-saving measures to counter the
drop in coal prices. DMCI Homes used the strategy of Overall Project Quality in order to give
an indelible impression to buyers and makes them think if they would be willing to shell out a
huge amount of money to buy that one unit in that particular condominium. D.M. Consunji,
Inc. also continues to undertake new construction techniques and using new products and
processes for the supply chain strategy of their high-quality standards constructions services.
 8. INVENTORY MANAGEMENT
DMCI Holdings’ inventory management is a very crucial to the company
because the company has many subsidiaries that is why it produces
numerous services throughout the country. The company sources raw
materials from the steel plant from South Korea, Japan and China. That is
why, construction, power and the house financing business has a high-
capacity steel fabrication as major raw materials of this company. The real
estate of this company were deemed critical economic health of the nation as
its impact is felt throughout the economic system.
 9. SCHEDULING
DMCI Holdings Inc. focuses on continuous improvement when it comes
to scheduling. DMCI Holding Inc. is a large business and holds construction
component companies in fact they have four major subsidiaries namely
D.M. Consunji, Inc. (DMCI), it is responsible for constructing commercial
buildings, hospital, large commercial complexes, power plant, high-raise
offices, etc. DMCI Homes is responsible for creating condominiums and
hotels. DMCI Power Corporation is also responsible for power services.
DMCI Mining Corporation is obviously for mining operations. Those major
subsidiaries has revenue, accounting and service center in order to generate
all the revenues, accounting and services activities efficiently.
 10. MAINTENANCE
Since the entity is a decentralized entity, the company has service center
which is responsible for maintenance and monitoring of the company’s
assets and employees. DMCI Holdings Inc. service center is responsible also
to entertain the predicament of their customers to avoid complex and they
aim for constant improvements. They also aim for the improvement to their
operation management for their company’s workplace and to provide goods
effectively and efficiently.
 PART 2
CASE ANALYSIS
I - BACKGROUND OF THE COMPANY
 DMCI Holdings, Inc. was incorporated on March 8, 1995 as a holding company to consolidate all
construction business, construction component companies. It was listed on the Philippine Stock Exchange
on December 18, 1995. David Mendoza Consunji is the founder of DMCI Holdings, Inc. He consider as
the Grandfather of Construction Industry.
In only a few years after incorporation, the Company has expanded its business organization to
include four major subsidiaries, namely: D.M. Consunji, Inc. (DMCI), DMCI Homes, DMCI Power
Corporation (DMCI Power), and DMCI Mining Corporation (DMCI Mining). It also have several
consortiums such as Semirara Mining and Power Corporation, Maynilad Water Services Inc., Subicwater
and Atlantic, Gulf & Pacific Company.
DMCI, a wholly owned subsidiary, is engaged in general construction services– the Group’s core
business. It is also engaged in various construction component businesses such as the production and
trading of concrete products and electrical and foundation works. DMCI is currently one of the leaders in
the Philippine construction industry, noted for quality projects delivered on time and its pioneering
application of advanced engineering methodology.
DMCI Homes aims to build condominiums and house and lots. Beginning 2003, DMCI Homes
became bolder and built East Ortigas Mansions, adding more amenities and facilities for its residents. Villa
Alegre Homes and Mayfield Park followed in 2004 with more improvements, which include the
installation of elevators at Mayfield Park. As more projects were developed, DMCI Homes as an
organization also grew.
 DMCI Power, a wholly-owned subsidiary of the Company, is engaged in the business of power
generation which designs, constructs, invest in, and operate power plants.

DMCI Mining is another wholly owned subsidiary engaged in ore and mineral mining and exploration.
It has entered into joint venture with Rusina Mining Ltd., a listed company in Australia, in which the
Corporation agreed to be the independent contractor to directly undertake the mining operations in the
municipalities of Sta. Cruz and Candelaria in Zambales. The mining operation is an open pit extraction of
nickel, chromite, and iron laterite for direct shipping.

SMPC, a 56%-owned publicly listed company established in 1980 is engaged in the exploration,
mining, development and sales of coal resources on Semirara Island in Caluya, Antique. It is currently the
Philippines’ largest coal-producing company which account for 90% of the country’s total coal production.

Maynilad Water Holding Company, Inc. (Maynilad) (formerly DMCI-MPIC Water Co.) is a consortium
with Metro Pacific Investments Corporation and Marubeni Philippines Corp. which owns 93% equity at
Maynilad Water Services, Inc. (Maynilad). The Company's economic interest in MWSI decreased to 25%
from 41%, after Marubeni acquired 20% of economic interest in Maynilad last February 2013.
II – SWOT ANALYSIS
 STRENGTHS
1. MONETARY ASSITANCE PROVIDED
DMCI Holdings Inc. had major subsidiaries, which it is not unusual to
start a Monetary Assistance regarding to their many businesses. There is
much monetary assistance that they participated with their consortiums such
as the Metro Pacific Investments Corporation (MPIC) to bid for the
government's stake in Maynilad. Thus, DMCI Holdings Inc. shows that
creating a pact with different companies makes one business to cultivate and
be more prosperous.
 STRENGTHS
2. HIGH PROFITABILITY & REVENUE
DMCI Holdings, Inc. (the “Company”) reported a 26% surge in consolidated
net income at P3.7 billion in the first three months of 2017 from P2.9 billion the
previous year excluding one-time investment gains. The strong double-digit
growth was driven by the 27% improvement in consolidated revenues driven by
coal and energy sales under Semirara Mining and Power Corporation (SMPC).
Since DMCI Holdings Inc. had many subsidiaries’ projects that they completed
successfully, it became their strength to continue developing and improving their
business up until they reaches the pinnacle of their success.
 STRENGTHS
3. DISTINCTIVE COMPETENCE IN ARCHITECTURAL DESIGN
CONCEPTS AMONG ITS DEVELOPMENT PROJECTS
DMCI Homes’ has a resort living theme in its projects. It projects DMCI
developments as a threat against the hustle and bustle of the typical urban jungle.
Its developments have more amenities and more land area allocated to common
areas which buyers prefer more. Fairway Terraces (Pasay City), Ivory Wood
(Taguig City), Calathea Place (Paranaque City), The Orabella (Quezon City) are
some of the evidences on how their architectural design gives them real distinctive
competence.
 STRENGTHS
4. STRONG FINANCIAL CONDITION; AMPLE FINANCIAL
RESOURCES TO GROW AND EXPAND THE BUSINESS; HIGH
EQUITY/CASH POSITION
DMCI Home has turned over 3.004 units to buyers as against 3.428 units
constructed. Therefore, it has been able to turnover 87.63% of all its
constructions to buyers. It has 12.37% low property retention late. Thus,
DMCI Holding Inc. proves that it is truly reserves the common interest and
satisfaction of their customers.
 WEAKNESSES
1. FUTURE MARKET SIZE
The market size is still facing barriers and what more in the near future. It
will take long adjustment periods to overcome that barriers. DMCI consider the
future market size as their weakness since they are aware if the market size drops
in the near future, their target market will be affected and company’s profitability
will also drops if this will happen. The larger market size will be better for
DMCI but disadvantage will catch-up if the future market size drops. DMCI key
competitors certainly use their weakness to surpass the income of the company.
 WEAKNESSES
2. HAVING BAD REPUTATION DUE TO
TORRE DE MANILA
Having bad reputation due to the issue of constructing a high-raise
establishment that became a “photobomber” of the Philippines’ National Park really
affects the company. Torre de Manila is the latest condominium project of D.M.
Consunji, Inc. The said condominium became a “photobomber” of the Rizal
Monument and many citizens are against of it even the Supreme Court issue a
restraining order to stop the construction. that is why, it has a big impact to the
reputation of DMCI having a controversial condominium project.
 WEAKNESSES
3. SUBPAR PERFORMANCE IN ADVERTISING
AND PROMOTIONS
DMCI Homes, one of the subsidiaries of DMCI Holdings, Inc. has weak
distribution channels. Commercials of DMCI Homes on televisions, print
ads and other forms of media are rare. They lag behind their competitors in
advertising their property developments. This is one of the reason why they
are not the leader in the market that they target.
 WEAKNESSES
4. DEVELOPMENTS ARE NOT LOCATED IN
CENTRAL BUSINESS AREAS
Unlike its key competitors, DMCI Homes projects are not centrally located.
This is a strategic choice of the company. However, the downside of this is
that the accessibility of the location is a key decision factor of a buyer.
Robinsons Land and Megaworld for instance locates its developments within
business areas such as the Bonifacio Global City. Furthermore, they also
construct office and commercial areas aside from residential ones.
 OPPORTUNITIES
1. INCOME LEVEL IS AT A CONSTANT INCREASE
The income level effect is the change in a company’s income and shows
how that change affects the constant increase. The opportunities appear as
income increases, so does the quantity of services demanded. As an example
when the company’s income increases, demands more services from the
company, thus increasing consumption, all things equal.
 OPPORTUNITIES
2. GLOBAL MARKET
Global Market is simply an activity of selling services in many countries
internationally. It can make the company wider and broader. To make it more
famous in different places of the world to get a lot of target market. Along
with all of these they can increase their sales and get a higher income to
accommodate many workers for the company.
 OPPORTUNITIES
3. VENTURE CPITAL
Capital invested in a project in which there is a substantial element of
risk, typically a new or expanding business. It is to expand the business on
where they can get a new target market within different areas locally,
nationally and internationally.
 OPPORTUNITIES
4. NEW PRODUCTS & SERVICES
New products are goods and services that differ significantly in their
characteristics or intended uses from products previously produced by the
firm. Invent new things that they can use in their company through their
services to attract more target market and use innovative techniques and
equipment to do tasks rapidly.
 THREATS
1. INCREASING RATES OF INTEREST
Interest rate is the amount charged, expressed as a percentage of
principal, by a lender to a borrower for the use of assets. Interest rates are
typically noted on an annual basis, known as the annual percentage rate.
Increasing interest rate that can affect the company, on which it can cause
debt when it continually and rapidly increasing.
 THREATS
2. TECHNOLOGICAL PROBLEMS
Technical means involving the sorts of machines, processes, and
materials that are used in industry, transport, and communications. In order
to reach this limit a number of technical problems will have to be solved.
Where they can’t work properly if the technical that they were using is
broken, and can’t work without those.
 THREATS
3. FINANCIAL CAPACITY
It refers to one's ability to manage financial affairs. There can be times
that they can’t manage their money if they were loaded with target markets.
They can’t provide the target markets without enough money to work with
the goods and services that they offer.
 THREATS
4. PRICE CHANGES
In the stock market, a price change is the difference in trading prices
from one period to the next or the difference between the daily opening and
closing prices of a share of stock. It is when some competitors change their
price lower than the DMCI Holdings Inc. They can be at risk when they also
change their prices, they can’t manage their works if they did it.
III – ALTERNATIVES FOR
IMPROVEMENTS
1. Since the DMCI Holdings Inc. is experiencing strong financial condition, the alternative
for this is company is to slowly expanding their business, rather than quickly expanding it.
There might be some conflict regarding in rush expanding. Thus, take more efforts in the
other branches to reach the peak of their sales/income.

2. Alternatively, the location of the Company must be in the centre in order to attract more
buyers and investors to avoid inaccessibility in the future.

3. DMCI Holdings Inc. is also experiencing substantial element of risk in which the
alternative for this is, to determine the disadvantages of expanding a business internationally.
It might cause some risks and may face some complex in the near future.

4. When it comes to the Price Changes, the alternative for this is to be constant and not to be
intimidated with some competitors. Constant means that the loyal customers, buyers and
investors of the DMCI Holdings Inc. will keep supporting the company until the end.
IV - CONCLUSIONS
 The researchers believed that the DMCI Holdings Inc. best in many ways.
Its strengths and opportunities offset its weaknesses and threats. The company’s
strong competitiveness, strategies and productivity can compete into many
companies nationally. The company strengthen certain core competencies in
general construction, increased organizational and operational efficiency,
minimized cyclicality in earnings, capitalized on operating synergies were can
be a positive effect to the company. Also shows that the Income Level is at a
constant increase, can make the company wide, provide enough capital venture,
and can assist New Products and Services that makes the company strong within
the national competitions between many companies. Weaknesses and Threats
didn’t really affect their company’s image and services that offered to the target
market. In addition, DMCI Holdings Inc. had a huge impact towards people who
received their services because of the assurance of their high quality standard
and values through their works.
V - RECOMMENDATIONS
1. DMCI Holdings, Inc. has high profitability and it even increases every
year, thanks to their numerous projects. But the management should also
think about their employees, who work hard in order to make their
projects successfully. The researchers recommends to give a housing
project to those employees who are deserving for this one of kind
incentives.

2. The management of DMCI Holdings, Inc. must take action in order to

surpass the issue of Torre de Manila. Having good reputation is very
crucial to the name of the company. In order to surpass the controversial
issue of Torre de Manila, the management of DMCI Holdings, Inc. must
take an appropriate action to eliminate those barriers that affects and
trying to destroy the reputation of the company.
3. In order to expand their target market, the company should enter the global
market. The global market will be better for the company’s income. It will help
to increase more the company’s income. Even if it will take a risk, but still it is
for the best of the company.

4. In order to refrain technological problems, the machineries or materials

should have proper check-up before using it. The quality of machineries and
materials should also check carefully in order to avoid technical problems. The
quality of a machine is very crucial to work properly. Lastly, choose those
employees who are professionals on using a certain equipment to avoid any
casualties.
VI - APPENDICES
REFERENCES CITED:

DMCI Holdings, Inc. History. Retrieved from

https://www.dmciholdings.com
DMCI Holdings, Inc. SWOT Analysis Overview from
https://www.swotanalysis24.com/swot-d/32060-swot-analysis-dmci-holdings-inc.html
Competitive Profile Matrix of DMCI Homes and its Competitors from
https://www.docanniechongwebsite.weebly.com
D.M. Consunji, Inc. Business Profile from https://
www.dmciholdings.com/our_businesses/page/construction
DMCI Homes Business Profile from https://
www.dmciholdings.com/our_businesses/page/residential-development
DMCI Mining Corporation Business Profile from https://
www.dmciholdings.com/our_businesses/page/mining-coal-and-nickel
DMCI Power Corporation Business Profile from https://
www.dmciholdings.com/our_businesses/page/power
DMCI Water Services Profile from
https://www.dmciholdings.com/our_businesses/page/water-services
 Maynilad Water Services History. Retrieved from https://www.mayniladwater.com.ph
Semirara Mining & Power Coporation History. Retrieved from
https://www.semiraramining.com