SAN MIGUEL CORPORATION AND A. SORIANO I.

Problem In the early 1980s, the SMC and ANSCOR Group of Companies under the leadership of Andres Soriano Jr., addressed a long felt need for an effective formal planning system for the two companies. According to Soriano, the companies had developed their budgeting and long range planning systems several years earlier but despite the many advantages of it, they were still not satisfied with their ability to respond to the changes in the environment around them. They sought professional advice from a team of experts on strategic planning headed by Peter Lorange, Professor at the Wharton School and consultant on strategic planning of the two companies, which results to great satisfaction with the approach to strategic planning. Mr. Andres Soriano Jr., the Chairman of the Board and CEO of the ANSCOR Group and SMC. Unsatisfied of their ability to respond to changing environmental conditions. II. Areas of Consideration III. Difficulty of the companies to be vigor in the changes of environment. The strategies and planning to be used in the companies for the future. The effects of the implemented strategies and plans. The budget available for the new strategies of the company.

Alternative Courses of Action 1. Constitute more active managers from both companies to be assigned in each team that will think for best strategies and planning process. Expand the research to collect more ideas and plans to be discussed together with the top management so the conflicts of perception and loopholes in the organization will be resolved. Advantages: The capabilities and skills of the personnel will be evaluated. And their performance efficiency and effectiveness will be determined. Loopholes within the organizational strategy, goals and mission will be resolved and the company will be more competitive.

Disadvantage: Optimizing the capabilities and skills of the personnel may be time-consuming, possibilities in conflicts of perception between managers may also arise and expanding of research may be costly.

2. Formalize a decision team; formulate all new strategies and plans. Advantages: New strategies may lead to enhance performance. Innovation of ideas leads to greater employee motivation and participation. Formation of decision team would lead to better decision-making and plan implementation.

Disadvantage: The formulation of new strategies may lead to even more loopholes and reformation of strategies may be time consuming and costly.

IV.

Recommendation Program Activities - Constitute more active managers from both companies. - Expand research to collect more ideas. Time Frame

Alternative 1