BUSINESS POLICY AND STRATEGY:

Creating Value at The Business Level

Submitted To:
Jann Mark Estramera

Submitted By:
Kristofer L. Soriano
Darwin O. Bulaqueña
4BSAT-3
VALUE CHAIN ANALYSIS
SICAT Drugstore
PRIMARY ACTIVITIES
 Inbound Logistics – Metro Drug Incorporated is their major dealer/distributor of
medicaments especially from Pharex.
 Operations – Situated in Mayapyap Sur, Cabanatuan City, alongside with other
establishments e.g. school, grocery, mini wet market, bakeries, barbershop, meat shop,
motorcycle parts & accessories and its major rival; The Generics Pharmacy.
 Outbound Logistics – People come to the store because it is what drugstores normally
do. They don’t offer such deliveries of medicines and other medicaments.
 Marketing & Sales – They inform customers very well about usage, dosage, intake level
and effectiveness of the drug being sold. Also they recommend affordable medicines
with the same effect if the customers have insufficient money to buy such brand.
 Service – Unlike other drugstores, they sell antibiotics even if the customers have no
prescription at all. They are warm with customers. They know how to choose between
urgent and emergency whenever there are numerous customers are upfront.

SECONDARY ACTIVITIES
 Firm Infrastructure – They kept this one a little bit confidential. Owned by Mrs. Lorena S.
Sicat, resident of a near barangay. Along with her employees; a Lead Pharmacist, two
salesladies, and a cashier. One of the salesladies is also a Pharmacist that consults with
the Lead Pharmacist if a serious medicine for a serious sickness is transacted.
 Human Resource Management – The owner prefers her workers to be of her known
identity. She only hires persons whom she has close relationships with and even
relatives as well for them to easily interact and get along with her.
 Technology – The lead pharmacist has this habit of going through online database of
medicines especially for those drugs that are rare and the availability is scarce. The
pharmacist uses this activity to provide wider and clearer information among
customers.
 Procurement – The firm’s advantage is that their distributor is also their rival’s
distributor. Meaning to say, SICAT monitors silently the TGP’s supplies and pricing
schemes so that they control and stabilize such pricing and stocking of medicines.
Components that add the most value to SICAT Drugstore
 Customer Service
 Pricing Scheme
 Accessibility
Components that may be better done and so could be removed from the value chain
 Single Saleslady
 Human Resource Management
 Technology
SUMMARY

INDUSTRIAL ORGANIZATIONAL MODEL

Phoenix Fuels
 Barriers To Entry – Until 1998, independent gas & oil companies are not allowed in the
Philippines.
 Number & Size – Petron’s existence provided Phoenix the challenge of breaking through
Petron’s monopoly in the industry
 Product Differentiation – Pricing Schemes of Phoenix provided a boost to their growth.
 Demand Elasticity – Lower pricing lead to higher demand.

What differentiates Phoenix from other petroleum companies is Phoenix’ diversified

operations. Phoenix is the first independent oil company listed in the PSE after the Oil
Deregulation passed in 1998. But how did Phoenix gained the title the “most aggressive oil
company in the Philippines”? It’s because of Phoenix trump card to offer a toll-free number for
franchising and it’s large containers of oil in gas stations and headquarters.