San Miguel Corporation and A. Soriano Corporation I.

Time Frame 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. II. Viewpoint Andres Soriano Finding the balance within the business, relation of the businesses with each other and how they co-relate with one another is but one part of the long range planning project that affects both the budgeting and their capacity for diversity. With the implementation of the new strategic plan that was enforced throughout the whole company, the SMC and ANSCOR. III. Statement of the problem The Company is to implement a new strategic form of planning to help the 2 companies in coping with the changes in their environment. Not only on how they can use this change in the advancement of their respective businesses, but also in adapting new kinds of businesses as an addition to their organizations portfolios. IV. Objectives

To determine the efficiency and effectiveness of the new planning system. To determine the advantages and disadvantages of the new planning system. To maximize the profitability of each business with the new budget scheme. To minimize overhead expenses due to the environmental changes as foreseen by the new planning system. To determine the impact of the new planning system on the overall motivation of the employees of the company.

V.

Areas of Consideration SWOT Strengths - Better short-term forecast from the long term planning. - Better understanding of the resource requirements and constraints of the future. Opportunities Weaknesses - Time consuming - The companys focus is centered on the development of the strategic programs, rather than the people implementing it. Threats

Create new products to attract new niches within existing business.

Keeping up with the challenges of adapting to new environmental opportunities and realities.

VI.

Alternative Courses of Actions ADVANTAGES Up-to-date evaluation report about the effects of the new planning system on the company. Changes can be executed ahead of time if the need arises. The company will be able to see the impact on the profit margin basing on the new budget schemes from the old one. The company will be informed on the effect of the new planning system to the work behaviour of the employees. DISADVANTAGES Time consuming Additional resources for the evaluation process

ACA 1. Monthly, Quarterly and Annual evaluation of the new planning system

2. Comparative report on the old and new budget schemes

Additional workload on the employees.

3. Create a survey/feedback form to quantify the motivational effect of the new planning system to the employees

Additional workload on the employees assigned on data gathering for the survey.

VII. 5-highest 1-lowest

Choice of ACA

Variables/ACA Feasibility Lesser Expense Significance Turn Around Time

1 3 3 5 1

2 1 2 4 1

3 5 1 3 3

VIII.

Conclusion and Recommendation In the analysis of this case, we recommend that the two companies San Miguel Corporation and Soriano Corporation will incorporate in their new strategy an evaluation plan that would help in quantifying the effects that was produced by this new strategy.

IX.

Action Plan Detailed Activities Evaluation Report Comparative Report Survey

Department Operations Accounting HR

Duration 1 month/1quarter/1year Annual 1 quarter after implementation