 FACTS OF THE CASE

1. It all begun in 1854 when Don Joaquin Elizalde, together with his
Uncle Juan Bautista Yrissary, and the Manila-based Spanish
businessman and financier Ynchausti established a trading
partnership.
2. Their main line of business was ship chandlery and later ventured into
Abaca making.
3. The steamships they owned plied the Laguna Lake to Manila route.
Later, Valentin Teus, a cousin of the Elizaldes, joined the partnership
4. Teus acquired distillery in Hagonoy, Bulacan from Elias Menchatorre
and merged it with Ynachausti Y Cia. Six years later, a rectifying
plant of this distillery was constructed in San Miguel District, Manila.

5. This small distillery was transformed by four successive generations

of the Elizaldes into the modern Tanduay Distillery, considered one of
the largest in the Philippines.
6. In 1893, Don Joaquin Elizalde became the majority stockholder in
Ynchausti Y Cia.
7. The company was renamed Elizalde and Co. Inc paved the way for
further diversification of its business interests.
8. Tanduay was transformed into a successful industry, producing
quality rhum and other distilled spirits for both domestic and
international markets.
9. Tanduay’s main plant and corporate office have always been located
in district that used to be called Isla de Tanduay, from which the
company’s corporate name and trademark was derived.
10.The name of the place was said to have been derived from the old
tagalog word “tanguay’ meaning a low-lying land or islet bordered on
both side by water, connecting two larger bodies of land.
 PROBLEM AREAS (3 minor problem)

1. Lack of involvement from top management in developing a new

service

2. Inadequate definition of customer for product/market development

3. Confusing service policies

 POINT OF VIEW

“We always strive to find a healthy

balance between environmental
development and operational efficiency.
We have realized this long ago in
Tanduay; we never stopped looking for
better ways to ensure we do our part for
the sake of the environment and to ensure
the future of our business,”

“Businesses need to level up our game in

making environmentally sound decisions
in our operations. As a result of
transferring into sustainable business
practices, we were able to derive direct
and indirect values that improved our
Name: Lucio Tan Sr.
processes and our relationships to our
stakeholders,” he added. Born July 17, 1934 (age 85)
Fujian, Republic of China[1]

Tan concluded. Residence Manila, Philippines

Nationality Filipino
Alma mater Chiang Kai Shek College
Far Eastern University
Known for Chairman and CEO of Philippine
Airlines[2]
Chairman of The Board
(TDI/Tanduay.)[3]

Net worth $3.8 billion (May 2019)

 MAJOR PROBLEM OF THE COMPANY

 Not Competitive and productive Employees

 OBJECTIVES OF THE COMPANY

1. successfully implement its strategy

2. anticipate and respond to consumer trends

3. successfully manage aggressive growth

 AREAS OF CONSIDERATION

1. Shall mean the document to be executed by any Person or entity

qualified to become a Bondholder.

2. Shall mean a day other than Saturday, Sunday, and public holidays on
which commercial banks and the Philippine Clearing House
Corporation are generally open for the transaction of business in
Makati City, and the City of Manila.

3. Shall mean the Trust Agreement between the Issuer and the Trustee,
and the Paying Agency and Registry Agreement between the Issuer,
the Registrar and the Paying Agent.

4. Shall mean the Five (5) Year Fixed Rate Bonds due in 2015 in the
aggregate principal amount of P 4,000,000,000.00, and an
oversubscription option of up to P 1,000,000,000.00, to be issued by
TDI and which shall mature on February 13, 2015
 5. Shall mean the electronic record of the issuances, sales and transfers
of the Bonds to be maintained by the Registrar pursuant to and under
the terms of the Paying Agency and Registry Agreement.

 ALTERNATIVE COURSES OF ACTION

 New Manager

 Changing Policy

 Marketing Strategy

Advantages Disadvantages
Flexible Low Income
Durable Costumer Dissatisfaction
More Productive Not Positive Reputation

 RECOMMENDATION

 I choose Marketing Strategy because the company never stopped

looking for better ways to ensure doing a part for the sake of the
environment and to ensure the future of our business,”
 PLAN OF ACTION

 Expansion to new markets overseas was its access to high-quality

cane and molasses in this side of the world and lead the growth of the
beverage industry, provide the consumers with quality products that
will satisfy their taste at the best possible value. Also to Permanently
Implement Advertisement Through fliers, Radio, Television, Social
Media, Posters & Internet.

\
 POTENTIAL PROBLEM (Why did you choose that alternative)

 According to Lucio Tan Sr. the Chairman of the board, “we were able
to derive direct and indirect values that improved our processes and
our relationships to our stakeholders,” so we should organize and fully
implement the Marketing strategy As a result of transferring into
sustainable business practices.
 TANDUAY COMPANY

CASE STUDY

Subject: ELECT. 3
Description: Operations Research
Schedule: M, T, TH, F
Time: 6:30 – 8: 00 PM

Submitted by:

Rodel J. Tompong
BSBA Operation Management-IV Student

Submitted to:

Ms. Maricel Echavez (MBA)

BSBA Operation Management-IV Dean/Instructor