Lamoiyan!

Lamoiyan is the company that manufactures Hapee Toothpaste in the Philippines. With prices 30% lower than the leading brands, Hapee is the 3^rd toothpaste brand in the country. Moreover, this is a company where corporate social responsibility is embedded in its vision and mission statements. Tangibly, they are employing hearing-impaired individuals to work in the assembly line and foster a culture of tolerance among its employees (i.e. basic training on sign language to non-hearing impaired employees etc). While there are both upside and downside to investing in the skill set of hearing-impaired employees, a threat presented in the case is the lowered costs of competitors by outsourcing marketing, accounting and operations to third-party agencies. 

Given all that best practices, How do we sustain Lamoiyan Corporation despite competitors’ efforts in decreasing production costs (i.e. Contractualization and outsourcing)?

The Group presented 3 alternative courses of action :

1. Maintain the status quo of the company and continue leveraging the employees’ skillset

2. Complete transition to contractualization and outsourcing

3. Devise retrenchment program for hearing-impaired employees to decrease long-term cost

The group chose alternative 3 which I totally agree because of the following reason: 

·  The transition of competitors to outsourcing is still a threat.

· There are other ways to control costs in the company to maintain market lead, in terms of price.

· Based on the Markkula Analysis, this is the ACA that is most in line with the company’s mission and vision statements.

· There are various ways available to support growth employees and still leverage on this (i.e. loyalty of employees, quality of the products)