San Miguel Corporation and A.

Soriano Corporation

Background of the Study

In the early 1980’s 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.

According to Soriano, the companies had developed their budgeting and long-ranged planning
systems several years earlier but, despite the many advantages these gave them they still were
not satisfied with their ability to respond to the rapid changes in the environment around them.
The therefore, search for a process that would enable them to upgrade their planning
capability.

In November 1982, Dr. Lorange addressed a joint dinner-meeting of SMC and ANSCOR Group
and shares his insights on the implementation of the strategic planning of the two companies.
Following are excerpts from an article prepared by Lorange during the meeting.

Time Frame

1982

The time of Marcos regime. In which the control of the ownership has been turned political.
Rapid changes to environment merely occurred.

Viewpoint

Andres Soriano

He has fully supported the Strategic Plan and encourages employees to participate in the
implementation of the plan. He was convinced and believed that the Strategic Plan to be
implemented will largely help the company to solve its problem regarding environmental
changes and the competition.
 San Miguel Corporation and A. Soriano Corporation

Dr. Peter Lorange

Dr. Peter Lorange was glad about how the company respond to the Strategic Plan he proposed.
The Strategic Plan became successful according to him because it gathered support not only
from the Top Management but also from the lower level of management.

Statement of the Problem

The company implemented a new strategic planning to answer the problem. The problem is
how the company asses the success of the strategic plan in order to develop the implemented
system.

Objectives
1. To be able to determine the efficiency and effectiveness of the strategic plan.
2. To be able to determine the person to be involved in the system.
3. To be able to encourage and motivate all employees.
4. To be able to secure information only to authorize personnel
5. To be able to encourage others to cooperate for the new strategic planning.

Areas of consideration
SWOT ANALYSIS

STRENGTH WEAKNESS
 Top management supports the  The success implementation of
plan and open for changes the plan depends on the
 Company initiates the changes acceptance of employees
for effective planning
 Employees were able to
participate with the strategic plan
OPPORTUNITIES THREATS
 The strategic planning results to  New organizational structure
team spirits, sense of  Improper designation of
 San Miguel Corporation and A. Soriano Corporation

responsibility and open responsibilities among members

communication among members

Alternative Courses of Action

ACA 1: Make an evaluation system in the new strategic planning system
Advantages:
1. Capabilities and skills of the personnel involved will be evaluated.
2. Efficiency and effectiveness of the performance of the personnel involved will be
determined.
Disadvantages:
1. Time consuming
2. Costly
ACA 2: Make an evaluation system to assess the new strategic planning.
Advantages:
1. Effectiveness and efficiency of the system will be checked.
2. Areas for improvement s in the system will be determined.
Disadvantages:
1. Time consuming
2. Costly

Conclusion and Recommendation

In the analysis of this case, we recommend that the two companies San Miguel Corporation and
A. Soriano Corporation will use the alternative course of action 1 and 2 which is to make an
evaluation system to assess and evaluate the new strategic planning. Since, they have already
 San Miguel Corporation and A. Soriano Corporation

implemented the strategic plan and Dr. Lorange pointed out the problems and mentioned how
the company solved it. We have come up with assessing the strategic planning to determine the
possible problems that might arise and for further improvements.

Action Plan

Detailed Person Time frame of Budget

activities responsible duration
1. Create HR 1 week
Performance
Evaluation
System form
2. Identify the HR 1day
persons that are
subject for
assessment
3. Conduct HR and 3-5 days
evaluation Employees
system
3. Evaluate and HR TEAM and 1 week
analyze the Top
result management
4. Decision and Top 1-2days
improvement management