Chapter 7

OBJECTIVES, STRATEGY RECOMMENDATIONS AND ACTION PLANS

Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals
and objectives. It is defined as the manner in which an organization should develop, utilize, and amalgamate
organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better
performance. In this chapter, the strategists would suggest strategic and financial objectives for ALMADECO, would
recommend necessary strategies to boost corporate success and action plans to turn business goals into reality.

A) Strategic and Financial Objectives

Financial objectives focus on achieving acceptable profitability in a company’s pursuit of its mission/vision, long-term
health, and ultimate survival. Financial objectives signal commitment to such outcomes as good cash flow,
creditworthiness, earnings growth, an acceptable return on investment, dividend growth, and stock price appreciation.

ALMADECO believes in total quality, the pursuit of continues improvement are the core towards achieving excellence in
all aspects of customer care to focus on winning additional market share, overtaking key competitors on product quality or
customer service or product innovation, achieving lower overall costs than rivals, boosting the company’s reputation with
customers, winning a stronger foothold in international markets, exercising technological leadership, gaining a sustainable
competitive advantage, and capturing attractive growth opportunities.

Overall Road Map for Objective Realization

The computation of the QSPM suggest Market Development as the strategy with 6.95 total attractiveness score as
compared to 5.97 of product development in second, and market penetration with 5.79. Although they are ranked in the
QSPM, it is best to have both Market Development and Product Development be simultaneously done to really be able to
establish a bigger market for the company. In Market Development, introducing the company to a new market through
technological efforts such as creating a website and activating the Facebook account of ALMADECO would increase its
share in the market, while researching for new forms of innovation on how to satisfy the customers through Product
Development would also increase the opportunity of the same end. Afterwards, once implemented, the company may now
execute Market Penetration to retain existing customers using promos and discounts if they choose to avail ALMADECO’s
services once more.
 Vision
Mission
Objectives

REVENUE
Market Penetration
(Strategy 3)
REVENUE
Market Development and Product
Php 19,590.001
Development
PROFIT
(Strategy 1 and Strategy 2)
Php 3,613,766
Financial Objectives

Year Sales Revenue Net income

2015
2016
2017
2018
2019

• (Write here Minimum of 2 Human Resource related Objective)

• (Write here Minimum of 2 Operations related Objective)
• (Write here Minimum of 2 Other Finance related Objective such as cost related items)
• (Write here Minimum of 2 Marketing related Objective)

Other Strategic Objectives

 To innovate products transform it into quality HVAC materials that will ensure customer satisfaction.
 To decrease HVAC electric consumption to make it more environmental friendly.
 To invest in machines to lessen up human-dependent works, to be able to increase efficiency of creating HVAC
products
 Increase employee competence by hiring more professional workers
 Engaging employees into seminars that would increase knowledge about business
 Increase compensation packages for professionals get more competent employees and to boost current
employees’ morale
 Increase sales at a rate of 15% per annum
 Increase return of investment
 Decrease importation costs by searching for more local suppliers
 Increase market share by creating a website and engaging to other platforms of promotions
  Retain current image as the cheapest and fastest HVAC provider
 Be able to develop product quality and increase customer satisfaction

B) Recommended Business and Organizational Strategies

In order for the objectives of a company to be achieved, the recommended strategies of the business should be
implemented. Using Business and Organizational Strategies are important when specifying or giving a comprehensive discussion of
the proposed strategy as it sums up the actions that a company intends to take to achieve its long term goals. In this part of the
Chapter, there will be a detailed discussion of each umbrella strategy that was formulated in the previous chapters.

Strategy Ranked Number 1: MARKET DEVELOPMENT AND PRODUCT DEVELOPMENT

The first strategy to be used for the business will be a simultaneous strategy implementation of Market Development
and Product Development. Market Development is the introduction of the existing products of ALMADECO to new markets or to
areas where it has not ventured on before; it is through this strategy where the business may be able to acquire new customers
other than those whom they already have a relationship with. Product Development on the other hand is seeking an increased sale
by improving and innovating the existing products and services of ALMADECO; it is through this strategy where the business may be
able to acquire customers who are searching for a specific type of service other than those being offered by the company.

Framework on Implementation of (Strategy Ranked Number 1): MARKET DEVELOPMENT and PRODUCT DEVELOPMENT

Set and Finalize Advertise on

INPUT Hire a OUTPUT
finalize design and different
web
company functionality social media
designer of website platforms
details

DIAGRAM FOR MARKET DEVELOPMENT

INPUT Research Contact Build OUTPUT

on new suppliers innovated Trial test Trial test
products
supplies
for
product
 DIAGRAM FOR PRODUCT DEVELOPMENT

Business Strategies:
A business strategy is the means by which it sets out to achieve its desired ends or more specifically known as
objectives. Below is a detailed discussion of such:
Table 7.1: Business Strategies of ALMADECO

BUSINESS STRATEGIES

To fully utilize the effectiveness of the strategy, the business should

PRODUCT AND SERVICE

simultaneously do Market Development and Product Development on its products.

Market Development strategies involve creating a web page wherein potential
customers may be able to view the details of the company and as well as communicate
with them for future transactions. Currently, the existence of the Facebook page of
ALMADECO may be improved by updating details and as well as maintaining an active
image to which potential customers may engage into.
The product must be able to expand its positioning to companies specifically
condominiums as the trends and buildings currently rise all throughout the Philippines.
The business’ details must be easily accessible so that potential customers may utilize
such, and what better way than to do it on the interweb.
Another thing to ponder is the position of ALMADECO with regard to product
innovation. Currently, ALMADECO is lagging behind its competitors when it comes to
the supplies and quality of the products that they use. Product Development Strategies
include researching on the current trend and innovating existing products to increase
the quality of such. ALMADECO should utilize the current trend as customers all have
preferences that they are looking for.
 ISSUES IN EXTERNAL ANALYSIS
In the previous Chapter, the following have the highest weighted scores in the
External Factor Evaluation (EFE): The opportunity of ALMADECO having the fastest
transactions among its other competitors in the Philippines is weighted at 0.40; the
threat of existing competition against foreign air conditioning brands thus making it
difficult for local companies to establish huge shares in the market is weighted at 0.40;
while the opportunity of people relying on air conditioning units to be able to give
them the means of comfort that they need is weighted at 0.36. Below are the
responses that have been devised in relation to Strategy 1.

Response Strategies per External Factors

• ALMADECO should introduce itself to a new market,while maintaining a brand of having fast
services in the industry. OPPORTUNITY: ALMADECO's transactions are faster
than its other competitors in the Philippines

• ALMADECO should introduce itself to the market as a local brand that is cheaper cmpared to THREAT: The existing competition against foreign aire
other brands that are foreign. conditioning brands makes it difficult for local
companies to establish huge shares

• ALMADECO should use the opportunity to introduce the product to the market considering OPPORTUNITY: People are reliant on air conditioning
their need to satisfy their craving for comfort and satisfaction in terms of air temperature. They units to be able to give them the means of comfort thet
should also be able to innovate their wares to satisfy the demands of the customers. they need

According to the SWOT Analysis done in Chapter 6, Market Penetration has been
MATRICES
EVALUATION FROM

appeared 2 times while Product Development had appeared once. The other
evaluation conducted was the SPACE Matrix, for which aggressiveness is being
recommended, so the company must be aggressive in increasing the awareness of
their market. Based on research, there is an increase of condominium buildings all over
the Philippines, ALMADECO should be able to provide services for all of these as
presented in the Internal Factor Evaluation (IFE).
Organizational Strategies:
Organizational Strategies are the sum of the actions a company intends to take to achieve long-term goals. Below is a
detailed discussion of such:

ORGANIZATIONAL STRATEGIES

ALIGNMENT ALMADECO must add more marketing and operations people who will man the
ORGANIZATIONAL

advertising and communications on social media, and as well as people who can
research on the innovation that the company’s products need. In the marketing
department, they must be able to produce and man the website and as well as other
social media accounts so that they may engage and acquire more customers. As for the
operations department, they must be able to research on new and innovative ways for
the product to be sold to customers with specific references.
With these efforts, there will be an increase of market size and demand of the product
all over the Philippines. More workers may be needed.
 In the previous Chapter, the following have the highest weighted scores in the

ISSUES IN INTERNAL ANALYSIS

Internal Factor Evaluation (IFE): The strength of having ALMADECO as one of the
cheapest and fastest HVAC provider in the Philippines is weighted at 0.72; the strength
of having fast installment of products upon demand of consumer is weighted at 0.44;
while the strength of having the deliver process of heating and air conditioning on time
despite importation of products is weighted at 0.24. Below are the responses devised in
pursuant to Strategy 1.

• While ALMADECO is considered as such, the market that they hold is only small. STRENGTH: ALMADECO is considered as
They should be able to avertise to other establishment so that there will be an one of the cheapest and fasted HVAC
increase of awareness.
provider in the Philippines

• ALMADECO should innovate their products while maintaining their fast

installment process so that they may also be able to satisfy the preferences of STRENGTH: Fast installment of products
their customers. upon of consumer

• ALMADECO should be able to accept more demands once they have established a STRENGTH: Delivery process of heating
means of communication with potentioal customers through the web page or and air conditioning is on time despite the
social media accounts. importation of products

Strategy Ranked Number 2: MARKET PENETRATION

The last strategy to be implemented is Market Penetration or the efforts to increase the current market share of
ALMADECO for its products or services rendered. In relation to the first strategy under Market Development, the company should
still use the creation of the website as its basis so that existing customers may still be able to contact the business when needed so.
Another thing that they could offer are discounts and promos when the customer has been with the business before.

Framework on Implementation of Strategy 2: Market Penetration

 Contact
INPUT Implemen List all
each of OUTPUT
t Strategy existing them to
1 customers inform of a
discount
offer given
DIAGRAM FOR MARKET PENETRATION
to them

Business Strategies:
A business strategy is the means by which it sets out to achieve its desired ends or more specifically known as
objectives. Below is a detailed discussion of such:

Table 7.2:

BUSINESS STRATEGIES

After utilizing the first two strategies simultaneously (Market Development and
PRODUCT AND
SERVICE

Product Development), the business should now focus on the existing market share
that they have and increase it through Market Penetration. The business can do this by
reintroducing the innovated product, which is the end result of Product Development,
directly or through advertisements on the internet.
The business could also offer discounts and promos for their existing market so
that they may be enticed to buy from their wares and as well as to be trusted.
 In the previous Chapter, the following have the highest weighted scores in the

ISSUES IN EXTERNAL ANALYSIS

External Factor Evaluation (EFE): The opportunity of ALMADECO having the fastest
transactions among its other competitors in the Philippines is weighted at 0.40; the
threat of existing competition against foreign air conditioning brands thus making it
difficult for local companies to establish huge shares in the market is weighted at 0.40;
while the opportunity of people relying on air conditioning units to be able to give
them the means of comfort that they need is weighted at 0.36. Below are the
responses that have been devised in relation to Strategy 2.

Response Strategies per External Factors

• ALMADECO should maintain its fast process so that existing clients may still avail
such. OPPORTUNITY: ALMADECO's transactions are faster
than its other competitors in the Philippines

• ALMADECO should be aggressive in their marketing scheme as the only reason THREAT: The existing competition against foreign aire
why they cannot compete with such brands is because they are not known in the conditioning brands makes it difficult for local
market to be in the industry. companies to establish huge shares

• ALMADECO should offer discounts and promos so that old clients may be enticed OPPORTUNITY: People are reliant on air conditioning
once again to buy from their wares. units to be able to give them the means of comfort thet
they need

According to the SWOT Matrix done in Chapter 6, it was recommended that

FROM MATRICES
EVALUATION

ALMADECO should offer sales discounts and promotions. ALMADECO can utilize this so
that they may be able to still maintain relations with current clientele.

Organizational Strategies:
Organizational Strategies are the sum of the actions a company intends to take to achieve long-term goals. Below is a
detailed discussion of such:
ORGANIZATIONAL STRATEGIES

Same with the first strategy, ALMADECO must add more marketing and

ALIGNMENT
ORGANIZATIONAL
operations people who will man the advertising and communications on social media,
and as well as people who can research on the innovation that the company’s products
need. In the marketing department, they must be able to produce and man the website
and as well as other social media accounts so that they may engage and acquire more
customers, and as well as maintain old relations and old trust in the market. As for the
operations department, they must be able to research on new and innovative ways for
the product to be sold to customers with specific references.
In the previous Chapter, the following have the highest weighted scores in the
ISSUES IN INTERNAL ANALYSIS

Internal Factor Evaluation (IFE): The strength of having ALMADECO as one of the
cheapest and fastest HVAC provider in the Philippines is weighted at 0.72; the strength
of having fast installment of products upon demand of consumer is weighted at 0.44;
while the strength of having the deliver process of heating and air conditioning on time
despite importation of products is weighted at 0.24. Below are the responses devised in
pursuant to Strategy 1.

• ALMADECO should maintain its strength of being the cheapest and fastest HVAC STRENGTH: ALMADECO is considered as
provider, what they should be doing is increasing their marketing scheme to one of the cheapest and fasted HVAC
further inform their potential and existing market.
provider in the Philippines

• ALMADECO should offer discounts and promos to their current clients with regard
to availing their services. STRENGTH: Fast installment of products
upon of consumer

• ALMADECO should offer discounts and promos to their current clients with regard STRENGTH: Delivery process of heating
to availing their services. and air conditioning is on time despite the
importation of products
C. Strategy Plan

Mission: We believe in total quality, the pursuit of continuous improvement are the core towards achieving excellence in all
aspects of customer care.

Vision:
Financial
Perspective
Sustained Shareholder Value

Productivity Strategy Revenue Growth Strategy

Improve Cost Increase Asset Maintain the Increase Sales

Structure Utilisation regular clients and Profit

Customer Customer Value

Perspective Proposition

Price Quality Availability Selection Function Service Partnership Brand

Production Service Attributes Relationship Image

Internal
Perspective Employee Management Customer Management Innovative Processes Regulatory and Social
Processes Processes Processes

Processes that secures Processes that enhance Processes that create Processes that improve
the performance done by customer value by new products and communities and the
employees and their right maintaining relationship. services, discounts environment
to compensation

Learning &
Growth
Information Capital
Perspective Human Capital Organisational Capital

Skills
Training
+ Website
Social Media Ads
Networks
+ Skills / Training
Knowledge
Knowledge Teamwork
 The strategists aims to sustain the shareholders value by doing the four perspectives in the strategy map, which are
Finance Perspective, Customer Perspective, Internal Perspective and, Learning & Growth Perspective. The first step that
should be done is under the Finance Perspective which sets the general goals of ALMADECO. The second step is under
the Customer Perspective, wherein the company should maintain close relationship with their clients, protect their image,
and provide good branding for the company. The third step is under the Internal Perspective, which deals with the
processes within their internal control, so that they can reach their goals on the first & second steps. And the last step
would be under the Learning & Growth Perspective, wherein they will provide growth opportunities for their employees by
having them trained & get new knowledges, and by having new machineries to help the company grow and be more
successful.

E) Departmental Programs
A department is a division of a business enterprise dealing with a particular area of activity. In this part of this chapter, you
could see tangible plans laid down for departments that comprise of Legal, Operations,Human Resource Financial and
Marketing. The strategist laid down different activities, time frame, expected output and persons responsible for a certain
project for each department.

Legal Department
A legal department comprises of legal consultants or lawyers that will assist with the legal claims of the corporation. Currently,
ALMADECO has no legal department. The strategist therefore lays down the plans and time table for creating a legal department
and the activities that a legal department could do if created by the corporation.

Legal Program: Hiring of a legal consultant + Creation of a Legal Department

Activities Timetable Expected Output Persons or Units

Responsible
Hire a permanent legal April 2017 Knowledge about HR Department
consultant Legal remedies for Accounting
 collecting of debts Department
or unpaid
balances from
customers

Knowledge of
patents and
trademarks
Legal Consultant shall June 2017 Creation of an HR Department
create a Legal Department effective legal Accounting
composed of legal department to Department
assistants or lawyers assist ALMADECO Legal Department
with all its legal
problems or in the
enforcement of its
legal claims

Legal Program: DOST

Activities Timetable Expected Output Persons or Units

Responsible
The legal department will Once a The products we Legal department
connect with the DTI to month are selling are safe
regularly check up with the based on the
products of ALMADECO standards of DTI.
We will conduct an orientation quarterly The employees will Legal department
to the other departments for be fully aware of the
everyone to be fully aware guidelines they
need to follow
 Legal Program: Payment of unpaid balances
Activities Timetable Expected Output Persons or Units
Responsible
Send requests for payments of May 2017 Payment/Receipt of Accounting
debt due from unpaid onwards uncollected Department
balances balances Legal Department

Enforcement of legal remedies After 2 Payment/Receipt of Accounting

for non-payment of debt after months of uncollected Department
lapse of notice sending balances Legal Department
notice

Legal Program: ALMADECO Intellectual Property Rights

Activities Timetable Expected Output Persons or Units

Responsible
Searching if there are any May 2017 Clear Company Legal Department
violations of ALMADECO for from possible
trademarks, patents or intellectual property
copyrights to prevent future rights violations
law suits against the
corporation
Secure a trademark for May 2017 Security for Legal Department
company’s logo or trademarks onwars company’s Marketing
found in its products trademark and Department
further promote
company by means
of owning its very
own trademark it is
legally entitled to.
 Operations/Productions Department
(Check all the Operations Related Business and Organizational Strategies under the Strategy Ranked Number 1, 2 and 3. Consider
again the operations related information gathered in external analysis (chapter 4) and internal analysis (chapter 5). The Operations
related objectives written in “A. Operations Objectives” must be also considered here in designing Program. It means, this programs
and activities must be towards attainment of Operations Objectives. Minimum of 3 Operations Related Programs).

Operations Management Program: Purchasing of machines to hasten production.

Activities Timetable Expected Output Persons or Units
Responsible
Canvass for low cost May 2018 Data base of Finance Department
machines (painting, suppliers plus Operations
cutting,fabricating) pertinent costs Department
Purchasing of machines December Hasten production , Finance Department
2018 improve product Operations
consistency, less Department
compensation
expenses, long term
investment towards
profitability

Operations Management Program: Purchase specialized equipment and add specialized people.

Activities Timetable Expected Output Persons or Units

Responsible
Innovating to solar panels May 2019 Increase of customers Operations
due to benefits of department
solar panels as
energy substitutes
Hiring more skilled employee July 2019 Identified employee HR department
Opening to international investors early 2019 More investors and Marketing department
and customers customers
Operations Management Program: Increase and improve the quality of hybrid equipment.

Activities Timetable Expected Output Persons or Units

Maintenance assistance
Product enhancement
Improve the efficiency of the
products
Responsible
Once a year Product sustainability Operation department
and durability
Improve its products Operation department
and match the
development made of
its international
counterparts.
Such improvements will Operation department
reduce energy
consumption on
cooling.

Marketing Department
(Check or gather all the Marketing Related Business and Organizational Strategies under the Strategy Ranked Number 1, 2 and 3.
The Marketing related objectives written in “A. Strategic and Financial Objectives” must be also considered here in designing
Program. Minimum of 3 Marketing Related Programs)
 Marketing Department

Marketing Program: Competitor Evaluation

Activities Timetable Expected Output Persons or Units

Responsible
Business Checking of Kruger and May 2017 Status of Kruger and Marketing department
Niagara Niagara
Scanning of products offered by May 2017 Identified products of Marketing department
the competitors onwards Kruger and Niagara
Conducting a survey on customer June 2017 Customer loyalty and Marketing department
loyalty onwards satisfaction

Marketing Program: Investment on Marketing Research

Activities Timetable Expected Output Persons or Units

Responsible
Maintaining the competitive July 2018 More purchases of Marketing department
stance in the local market the product.
Expanding the quality of their July 2019 The customer will be Operations
products to match as those of encouraged to buy Department
international brands again for Marketing Department
improvements.
 Marketing Program: Establishment of Website

Activities Timetable Expected Output Persons or Units

Responsible
Gather and finalize all necessary daily Finalized and concise Marketing Research
data needed for website data that supplement Group
Study existing websites of monthly Identified targets of Marketing Research
competitors website data Group
Data encoding of website monthly Implementation of Hired IT Specialist
website and Marketing
Manager
Finalization of Website look monthly Executed and Marketing Manager
finalized Company and Hired IT
Website Specialist

Human Resource Department

(Check the Human Resource Related Business and Organizational Strategies under the Strategy Ranked Number 1, 2 and 3. The
Human Resource related objectives written in “A.Strategic and Financial Objectives” must be also considered here in designing
Program. Minimum of 3 HR Related Programs)

HR Program: Hire a marketing specialist

Activities Timetable Expected Output Persons or Units

Responsible
Send out publication material April-May Publication of job HR department
for opening of job position 2017 position opening
Accept applicant and conduct June 2017 Collection of HR department
interviews resume and conduct
of interview
Hiring of best applicant June 2017 Hiring HR department
 HR Program: Assign a committee for evaluations

Activities Timetable Expected Output Persons or Units

Responsible
Gather and analyse external April-May Listing of HR department
and internal environment of 2017 opportunities and Marketing
ALMADECO threats, strengths Department
and weaknesses
Conceptualize strategies to June 2017 Evaluation of HR department
maximize opportunities and conceptual Marketing
minimize threats strategies Department
Seek approval from the Board July 2017 Execution of Marketing
and execute strategies onwards strategies Department

HR Program: conduct performance appraisal

Activities Timetable Expected Output Persons or Units

Responsible
Develop a performance April-May Performance HR department
appraisal for every job level 2017 appraisal templates
Conduct a performance June-July Performance HR department
appraisal of every employee 2017 appraisal results
Analyse performance August Analyses of HR department
appraisal result 2017 performance
appraisal
Conduct necessary team September Team Buildings HR Department
building or changes to 2017 Activities or Job
company organization onwards Rotation or
Trainings
 Finance Department
(Check the Finance Related Business and Organizational Strategies under Strategy Ranked Number 1, 2 and 3. The Finance related
objectives written in “A.Strategic and Financial Objectives” must be also considered here in designing Program. Minimum of 3
Finance Related Programs)

Financial Management Program: Budget Organization

Activities Timetable Expected Output Persons or Units

Responsible
Finance department will June-july Liquidation reports Finance department
coordinate with the operations 2017 for every project
department properly auditing
of project
Collection of records— August- Organization and Finance department
liquidation reports, summary of September filing of all financial
expenses with annexed 2017 records
breakdown
Analysis of all financial records October- Financial reports of Finance Department
november growth, recession
2017 and all possible
discrepancies in
expenses
Disclosure of all project November Board meeting Finance department
reports and financial analysis to presentations of
and reports to the December past, and current
management/board 2017 financial reports

Financial Management Program: Budget efficiency

Activities Timetable Expected Output Persons or Units

Responsible
Recording of the expenses October – Organization of Finance department
incurred by the company november expenses
2017
Look for lower cost suppliers December Report on possible Finance department
and make analyses 2017 – lower cost suppliers
February
2018
Presentation and approval of March 2018 Approval or Finance department
the change of suppliers to the rejection by the
board. Board