Taino+Construction+Case


 * Taino Construction Case**

__** Case Analysis Template **__
====Reading: Figueroa, C. R. & Sagebien, J. (October 2010). Taino Construction Supplies: Managing innovation risks at an SME in a small, developing nation. Ontario: Richard Ivey School of Business. ====

**Who:**
Taino Construction, Mario Rivera who is president of Taino, Rosa Perez de Rivera

I**mmediate Issue/Problem Being Faced:**
Since the company was established as a family business in 1950, they were going green concept and deliver high quality concrete products. Due to Taino is the principle suppliers of raw materials for construction in industry in San Felipe, and they are currently haveing a time crisis. The large projects was stopped, and market sales were slow. In 2009, the company have immediate issue in __h__ __ow could Taino continue to be a leader in green construction while still being profitable through a difficult economic period.__ Moreover, Taino need to boost up the sale in nearly by as well. The underlined portion is the immediate issue, along with how the company can be strategically innovative from here. The other things mentioned are really basic issues.

- Construction Market is struggling and the demand for green products is unproven again because of the lack of incentives.
====- In 2009, Taino was plunged into contract dispute because the original filed an arbitration claim for breach of contract. The company was in a difficult position: If Taino lost the arbitration; the company would be compelled to compensate the original supplier for damages.====

-In 2007, Taino entered into an agreement for the development of a mining concession with a multinational company that originated in New Zealand. But a large competitor and customer of Taino in San Felipe became the main partner in this project by hostile takeover of the majority shares of the New Zealand partner. This project was on hold. Besides that, during 2008, multiple protects of Taino had to be shelved. Essentially, pages 6 to 8 cover off the basic issues. In addition, there are economic issues in potential markets, like the US.

**Urgency/Importance:**
Because the industry is at a downtime in the economy, Taino should use this time effectively to develop a new strategy because they should have been cutting costs when the economy is like this. Does that mean it is urgent, or...? It makes it very important that when projects are started as part of an economic stimulus, they are able to sell the idea of green construction and the importance of the environment so that they will be able to shore up a large amount of the projects.

**Decision Criteria:**
====- Develop a strategy that clearly outlines benefits of using green construction as well as demonstrating that the quality of the products does not get diminished using products such as fly ash in the construction process, and also sell the importance of their recycling plants.====

- Assess the risk and estimate the sustainability of new strategies. Sustainability in terms of...?
====-Assess the situation of the construction industry and real estate market, and concern relevant policies and actions which be taken out by government. ====

**Alternatives:**
====1 Try and get meetings with the government in which they are able to outline the benefits of using their green materials, as well as the benefits of their recycling plants, because if they are able to make them feel as though it is a possible alternative when they are completing any of their new capital projects Rivera has already been actively involved doing this: pages 2 and 3. ====

2 Get a mediator to resolve the situation with the current and old supplier, because this will drop the cost of their products and allow for a larger product margin
3. Promote by using PR and cooperate with eco-friendly activist groups put pressured on media. In this case, Taino will make government feel that eco-products in important, and they might turn to use it. 4. Find new large suppliers while still keep using eco-friendly product. Also, recycling material and prospects for larger clients in the future.

5. Develop new strategy in order to changing the company to innovation by using major change in opertaion management and strategy management.
Be careful. How are these distinct alternatives? Couldn't they all be pursued as part of one strategy? Remember that you aretryingto solvethe immdiate issue, and each alternative should represent a different, specific course of action.

**Assessment of Alternatives:**
==== 1- Try and get meetings with the government in which they are able to outline the benefits of using their green materials, as well as the benefits of their recycling plants, because if they are able to make them feel as though it is a possible alternative when they are completing any of their new capital projects ==== ==== Pros: The government will usually be the largest purchaser of construction work because of all the capital projects, and if they are able to convince them that it is very good for the environment, they may be willing to use their companys products over others. Taino become eco-friendly to the environmental which create good reputation to the company. Also, they are able to help the world go green. ==== ==== Cons: In this alternative might effect other potential compertitors come into the market, and go green concept. Due to Taino is a very large supplier in cement and concrete, but using every theing very high quality and high cost. T ====

2 Get a mediator to resolve the situation with the current and old supplier, because this will drop the cost of their products and allow for a larger product margin
Pros: - Maintain the orginal supplier may save relevant cost of supply chain.

- Development current supplier is good for expanding supply channels, and reduce the supply risk.
- Be able to expand more line in the future with good supply channels. - Still remind green concept.

- Due to contract dispute with original supplier, nobody has full grasp that both parties will continue to cooperate.
- Risk in findding new suppliers. - Require time to find a good supplier while remind concept of green product.

3. Promote by using PR and cooperate with eco-friendly activist groups put pressured on media. In this case, Taino will make government feel that eco-products in important, and they might turn to use it. Pros: it might turn out good effect to the company that government see the problem, and would like to become eco-friendly if it is really better that what they are using right now. Also, government will become big client for Taino which might lead other company comply in buying Taino's product. However, in cons, it might require bad effect to the company in pulling eco-friendly activist groups in pushing pressure to the government.

4. Find new large suppliers while still keep using eco-friendly product. Also, recycling material and prospects for larger clients in the future. Pros: due to the old problems with current suppliers, find the new one would eliminate those problem while they still remind green products serving their clients. New suppliers might have lower cost, and better quality. Cons: it risks in order to find the large new suppliers. They might/ might not have it. Moreover, they might found it in far location which not worth to import-export.

5. Develop new strategy in order to changing the company to innovation by using major change in opertaion management and strategy management.
Pros: Nowadays, there are so many innovation programs and specialist help in changing company's culture. Following the exhibits 4, Taino could use risk matrix, R-W-W screen and is it real? can we win? is it worth doing? concept in order to guide changing in the company. Cons: it requite major changing since the beginnng which might have a lot of problem occur in serior manager's Taino. Also, changing require risk which can not guarantee any success.

**Selection of Preferred Alternative:**

Due to immediate issue, Taino need to boost up sale and fix the problem of suppliers, we choosing alternative number one and four. Alternative number one is t rying to do the business with the government, which they are able to outline the benefits of using their green materials. Alos, alternative four is f inding new large suppliers while still keep using eco-friendly product. Also, recycling material and prospects for larger clients in the future.

**Assumptions:**
====There is an agreement in the view of the same project between agencies and companies.And government can provide new relevant to support. ====

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">**Action/Implementation Plan:**
====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Taino should plan how to present their company to the government in order to get into government's project. Between that, Taino need to looking for new large supplier as well. The case tells us that they have already done much of this. Be careful! ====