Title of the Case- San Miguel Corporation and A.

Soriano Corporation

Time Context- In the early 1980s, the San Miguel Corporation (SMC) and A. Soriano Corporation (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.

Mission- San Miguel Foundation, Inc. is committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate socialres ponsibility among the various San Miguel businesses in pursuing mutually beneficial programs that lead to self-reliance and sustainability.

Summary/ Abstract More than a decade ago, the ANSCOR Group and SMC spent several years developing and strengthening their budgeting systems in order to have a better internal focus on where they were going over the short-term. Their next evolutionary step was the development and implementation of a longrange planning process. This helped them to better understand the resource requirements and constraints of the future. While these systems definite assisted them in planning for the future, the rapidly changing environment and the increase competition led them to search for still other ways of further improving their management approach. This article will discuss various aspect of the strategic planning approach adopted by the ANSCOR Group and SMC help them cope with the future. First, I shall discuss briefly the basic aspects of the approach which can be described in terms of four important dimensions. One dimension pertains to the determination of the companies future directions through hierarchy strategies under this it is composed of three levels namely, corporate level, Business Family level and Business Element level. A second dimension is the delineation of the major phase of the strategic planning process, which composed of three major phases, namely, Objective Setting Phase, Strategic Programming and Budgeting. A third characteristic is the creation of a strategic structure through which competitive strategies can be developed. A final dimension is the identification of a set of interactive and iterative steps that the planning process consists of, it discussed with the various sections must be meaningfully put together as a process. Most companies of the size of the ANSCOR Group and SMC will be operationally organized around a complex structure of specialized departments, divisions, and subsidiaries. The raison d etre of the operating structure is to provide specialized function and clear responsibilities for operating tasks. The last dimension is a pattern of interactive and iterative Steps of the planning process. Under the implementation steps at the ANSCOR Group and SMC there are four steps that are essential for the successful implementation of the strategic planning. Under this, the commitment of top management it is a consideration to ensure that the management should involved from the beginning and could thus trust from the new process to support the new planning approach because it strengthening the company s strategy development that set off the effort to pursue the present approach, strategic structure is the developing plans using different approach, planning calendar it is the identifying in detail the steps that has to be undertaken in each phase and process consultants is

establishing the planning calendar, developing suitable guidelines for presentation of plans among others. The third is some implementation problems and their solutions are time consuming in conducting meeting, too much internal focus in developing the objectives and strategic programs, and who were asking for hand holding to guide them through the process and lastly, some benefits of the planning process, clearer understanding of what truly takes to succeed in a competitive world, involved team spirit and a sense of team responsibility for successful implementation of the objectives and strategic plans, there is more open communication among managers in the corporation as a result of cross functional memberships in business families, and the planning process provided the mechanism for top management to be more exposed to a broader set of people particularly high potential.

Statement of the Objective/s SMC s objectives o To be constantly aware of the aspirations of the people and of the nation, and to ensure that San Miguel continues to make a major contribution towards the achievement of these aspirations. o To manufacture, distribute and sell throughout the Philippines food products, beverages, packaging products and animal feeds, being ready at all times to add, modify or discontinue products in accordance with changes in the market. o To diversify into fields which will ensure optimum utilization of management resources and a substantial contribution to corporate profits o To seek and develop export markets for new products as well as for those already being produced by the Corporation. o To generate a return on funds employed sufficient to ensure an adequate rate of growth for the Corporation, and to provide satisfactory returns to stockholders. o To provide an environment which is conducive to the development of the individual and which encourages employees to realize their full capabilities o To adopt a flexible and objective attitude towards change and to pursue an active policy of innovation.

I.

Central Problem How would ANCOR and SMC respond to the rapid changes in the environment around them and how would they search for a process that would enable them to upgrade their planning capability.

II.

Areas of Consideration o Strength

The SMC company known leader in the beer business in the Philippines The company SMC sought professional advice from a team of experts on strategic planning. The company is strict with the quality of its products. The companies implement strategic planning. The plans of these companies were done step by step and well studied. The tasks were designated properly, all being allocated. Plans were deeply being examined. All things are in detailed.

 Opinions are being analyzed well because there are lots of people involve. There is an open communication among the managers and employees.

Weaknesses
Competition was very tough. They were just concentrated in internal part of the business which is planning. Their planning process is too long. Their are more works to be done There are lots of groups/ people who are involved.

Opportunities
Develop clear competitive strategies for a particular product/market niche so as to beat specific competitors in reaching the targeted set of customers. The acceptance of the two companies on having various teams is significant step towards increasing the organizations flexibility to respond to changing environmental conditions. Asian beer markets were similar with Philippine beer market. This will lead to a strong company that is always prepared, whatever trouble may come. Strategic programs to achieve the agreed-upon objectives are likewise being prepared in a more critical, more realistic manner.

Threats 1. Competitor s effectiveness of planning system 2. Low standard due to ineffective planning 3. Moderate increase of income 4. There is a tendency on external portion of the companies
Analysis

to fall down, like on the sales.

III.

Alternative courses of Action 1. The top management of the two companies should focus on the problem/s of the companies that they should change. Advantages : they can solve problem/s that can affect the business Disadvantages : they only focus on the negative side which is the problem/s of the two companies 2. The two companies should consult to an expertise for a better ad effective planning Advantages : the planning that you will be made is fully effective Disadvantages : additional expenses 3. Think the benefit/s that each company should experience in behalf of their business transaction and formulate it to an action Advantages : each company should have great advantage in pursuing their business Disadvantages : allocation of budget for the action

IV.

Strategy Formulation/ Recommendation I therefore conclude that the best solution to the problem is alternative number 3 which is thinking the benefit/s that each company should need to experience because they need to show the benefit/s and advantage/s of both the public and I the organization itself. They employees would become enjoyable because they are belonging to the plans of the companies.

V.

Plan of Action 1. They should devoted long period of time.

2. They need to consult inside the organization that has a capacity to see the future of the company. 3. The ideas of developing the plan should be started in the top management.

VI.

Potential Problem 1. What if they cannot develop their effective plans? 2. What if there competitors plan is more effective than the two companies? 3. What if they cannot produce their products in high quality because lack of planning?

VII.

Contingency Plan 1. They need to create a new one that would satisfy them as their planning. 2. They need to revise the planning to a more effective plan. 3. They should ask for the help of an expertise to separate the effect of their plans in their company itself and to their products.