I.

State of the Problem

San Miguel Corporation is not new to us for its one of the Philippine’s largest
conglomerate which occupies about 5.1% of the country’s gross domestic product as of 2015.
Known for its wide variety products – beverages, food, packaging, and even plant,
infrastructure and fuel and oil – SMC is indeed one of the nation’s largest employer with
approximately 18,000 of employees as its direct workforce.

Being one of the prestigious companies in the country doesn’t give SMC a privilege to be
forbidden from any unnecessary problems in the organization that may result in its employee
filing a lawsuit in the court. In fact, SMC faced a number of lawsuits over time.

For instance, there was this case where two hundred ninety-one workers (291) filed
complaints regarding illegal dismissal, underpayment of wages and separation pays against SMC
and an independent contractor – MAERC Integrated Services, Inc. In the end, the court ordered
SMC and MAERC to pay for the wage differentials of the complainants and pay the attorney’s
fee. This case was petitioned by SMC to be reviewed again on 2003 but it was denied.

There was also this case regarding illegal dismissal wherein SMC was ordered for the
reinstatement of the complainant without loss of seniority rights. This was promulgated on
2009. Though these cases happened in the past, still, it may affect SMC’s reputation and this
might occur again in the future.

Brand reputation is really vital for a company. It’s a great factor in gaining loyal
customers and even potential employees. Tainting and dragging a company’s name into any
lawsuit may affect its reputation. This must be avoided to prevent serious damage and losses.

II. Objectives

1. To further examine the effects of brand reputation to a company.

2. To determine the implication of past and current situation in developing strategic

countermeasures.

3. To develop a long term strategy for an effective management.

SWOT Analysis

Strength

• Product positioning

• Established brand name

• Globally and internationally known

• Diversified company

Weaknesses

• Brand Expansion

• Large percentage of total sales volume

Opportunities

• Global markets

• Wide variety of products and services

• New ventures

Threats

• Increasing competition

• Tax code changes

Alternative Courses of Action

Brand reputation is essential when it comes to embarking your advantageous position in

your customer’s mind. Once it is tarnished, it may reduce or lose the loyalty of your customers
and even your employees. Loyalty is expensive to buy but it’s easy to lose.

Reputation can also affect your company’s sale. If a company fail to maintain a good
reputation, its competitors may take this as an opportunity and they may become ahead when
it comes to competitive advantage.

After a thorough discussion, our group came up with concepts or ideas that SMC can
use as a tool in maintaining their reputation atop and to prevent the cases mentioned above to
occur once again or even avoid other cases that they may face.

1. Value the Labor Code

Through valuing the labor code, SMC can assure its employees that their rights are
being protected which may indicate that the company is not just focusing on how to make profit
and satisfy customer demands but it also give value or importance to its employee’s welfare.

2. Develop a Better Communication

SMC should build a better communication inside its organization. With this, employees
can be regularly checked if they have any complaints. Their opinion should be taken into
account and their voices should be heard. Once communication is considered as the bottom line
of everything, serious matters will never have a chance to be filed in court because employees
are given a chance to voice out their concerns and they are given a proper response.

3. Enhance Interpersonal Relationship

Having an enhanced interpersonal relationship is important especially in a big

organization like SMC. If an employee has a problem, he can have someone to talk to regarding
the procedures he should undergo to settle his matter.

Conclusion and Recommendation

Therefore, SMC should not just focus on thinking the profit they could get in their
venturing projects or thinking how to satisfy customer demands, but also, it should hear its
employees, so it will not come to the point where they will file lawsuits and petitions against the
management that may result to more serious trouble like decreasing the value of brand
reputation.

We, therefore, recommend SMC to improve more their management. Constant

improving may help keep the company ahead from its rivals.

References:

http://www.sanmiguel.com.ph/page/our-company-inner

https://pt.slideshare.net/edzmhar0186/san-miguel-corporation-24130073?smtNoRedir=1

https://www.swotanalysis24.com/swot-s/94273-swot-analysis-san-miguel-corp.html

http://sc.judiciary.gov.ph/jurisprudence/2003/jul2003/144672.htm

http://sc.judiciary.gov.ph/jurisprudence/2009/october2009/163033.htm