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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

EVALUATION OF BUSINESS POLICY AND STRATEGY OF


GRANDSPAN DEVELOPMENT CORPORATION AS A
DRIVER ON GAINING COMPETITIVE ADVANTAGE

A Research and Documentation


Presented to the Faculty of the College of Business Administration
Polytechnic University of the Philippines
Sta. Mesa, Manila

In Partial Fulfillment of the Requirements for the Subject


MANA 3103 Business Policy & Strategy

by

Luistro, Glaidel Anne B.


Omale, Jomari N.
Vito, Aizel Thea P.

BSBA-HRDM 4-6D

SEPTEMBER 2017
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

TABLE OF CONTENTS

Title page .. i

Table of Contents ii

Chapter 1 The Problem and Its Background

Introduction .. 1

Background of the Study ... 2

Statement of the Problem . 4

Significance of the Study ... 5

Scope and Limitations 6

Definition of Terms . 7

Chapter 2 Statement of the Problem

Objectives 8

Question # 1 9

Question # 2 9

Question # 3 9

Question # 4 .. 10

Question # 5 .. 10

Question # 6 .. 10

Question # 7 .. 11

Question # 8 .. 11

Question # 9 .. 11

ii
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Question # 10 ... 12

Question # 11 12

Question # 12 ... 12

Question # 13 ... 13

Question # 14 ... 13

Question # 15 ... 13

Question # 16 ... 14

Question # 17 14

Question # 18 ... 14

Question # 19 ... 15

Question # 20 ... 16

Chapter 3 Findings and Recommendations

Findings . 17

Recommendations ... 18

Appendices

A. Request Letter to Conduct Interview .. 20

B. Sample Pictures after the Interview . 21

C. Financial Statement ... 22

D. Curriculum Vitae

D.1 Curriculum Vitae of Glaidel Anne B. Luistro . 23

D.2 Curriculum Vitae of Jomari N. Omale .... 24

D.3 Curriculum Vitae of Aizel Thea P. Vito .. 25

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Businesses need to implement sound strategies to succeed. Those

strategies form part of an overall management and business policy that guides

the business in connecting with customers, generating profits and managing

resources. The related concepts of strategic management and business policy

are keys to help small business owners manage their responsibilities and set

clear objectives.

Business Policy defines the scope or spheres within which decisions can

be taken by the subordinates in an organization. It permits the lower level

management to deal with the problems and issues without consulting top level

management every time for decisions.

A business strategy is the means by which it sets out to achieve its

desired ends (objectives). It can simply be described as a long-term business

planning. Typically a business strategy will cover a period of about 3-5 years

(sometimes even longer). Also business strategy is concerned with major

resource issues e.g. raising the finance to build a new factory or plant.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2

Background of the Study

Grandspan Development Corporation serves domestic and international


markets and is considered as one of the most equipped steel fabrication plant in
Asia with Rated Capacity of 2000MT a month of fabricated Heavy Steel
Structure.

The company manned by a competent staff of licensed Architects,


Structural, Civil and Mechanical Engineers who were formerly connected with
known steel fabrication companies, well-versed in the fields of Engineering,
Technical Services and Quality Control.

Address: Barangay Tagpos, Binangonan, Rizal

Year of Corporate Established: Grandspan Development Corporation


(GDC) was established in 1979

Quality Policy:

Grandspan Development Corporation is committed to the achievement of


excellence in Structural Steel Design, Fabrication and Erection. We comply to
International Standards for Quality Management Systems (QMS) to meet the
customers, statutory and regulatory requirements applicable to the product and
Companys own standards. We maintain our stature as a leader in steel industry
as we set and achieve challenging quality objectives and adopt global best
practices towards continual improvement of our business processes to achieve
total customer satisfaction.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 3

We produce the best and keep on improving!

Vision:

Grandspan Development Corporation shall strive to be the leader in steel


fabrication, tubular section, trailer manufacturing, hauling equipment and general
construction. The corporation shall accomplish this through total quality
management and at the same time promoting long term partnership with
suppliers, customers and the community.

GDC mission to be partner in the countrys quest for progress and


development, and with these visions GDC will provide customers with
internationally accepted products and services of enduring value with the highest
standards of professionalism and technical competence.

GDC shall provide a safe and environment friendly atmosphere, a working


environment conductive to growth and industrial peace.

Mission:

Grandspan Development Corporation mission to be a partner in the


country's, quest for progress and development, and with these visions GDC will
provide customers with internationally accepted products and services of
enduring value with the highest standards of professionalism and technical
competence. GDC shall provide a safe and environment friendly atmosphere, a
working environment conducive to growth and industrial peace.

Business Activity:

Building, Industrial Plants, Residential Housing, Structural Steel Works,


Steel Fabrication Works, Manufacturer of Steel tubular hollow sections, trailer
trucks, hauling equipment and chrysotile cement roofing.

Numbers of Employees: 201 - 500 Employees


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 4

Statement of the Problem

The researchers constructed twelve (12) questions about the evaluation of

business policy and strategy of Granspan Development Corporation as a driver

on gaining competitive advantage.

Specifically, this study sought to answer the following:

1. Are there any problems that exist when formulating the company policies?
If yes, how are you able to solve it?
2. What are the factors being considered in formulating the policies?
3. How do you assess the external environment in formulating your business
strategy?
4. How can you relate your policy to your strategy in attaining your goals?
5. What are the specific sanctions that the employee would face in case of
violating company policies?
6. How does the management ensure that the company policies are followed
by all employees?
7. How does the management assures the validity if an employee was
reported for violating a specific policy?
8. What policy in your company oftenly violated by your employees?
9. What specific business policy do you have that is often performed well or
followed by your employees?
10. What are your companys organizational principles and values and how do
they guide you in developing your mission and vision statement?
11. How important is strategic planning in your company and how do you
stack up against other competitors? What policies do you think you share
among them and what makes you different?
12. How does the policies and strategies improve the competitive advantage
of the business?
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 5
13. How do you pursue the objectives of the organization if there are
impulsive changes in the policy implementation?
14. How does your company reacts to a new product of competitors that is
introduced to the market? How do you strategy in competing with the
same line of business?
15. How do you work with the resistance of the employees regarding with the
new policies that the management would like to implement?
16. What systematic techniques and principles do you consider for better
organizing and executing the function of strategic leadership?
17. How do you measure the overall corporate performance?
18. What is the impact of business policy in organizational performance of the
company?
19. Change is constant and some new policies are needed to be
implemented, how does the management helps the employee/s who
opposed to accept the change in the organization?
20. Are there significant strengths, weaknesses, opportunities and threats
developing inside your company?

Significance of the Study

This study aims to determine the evaluation of business policy and

strategy of Granspan Development Corporation as a driver on gaining

competitive advantage.

For the Institution: This study will be significant to the academic

institution, Polytechnic University of the Philippines itself. The outcome of

this research will help the university determine the effectiveness of having

Business Policy & Strategy in the curriculum.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 6

For the Students: This will give students the knowledge of how the topics

discussed in the subject applied into the actual environment.

For the Faculty Members: This research will help the instructors and

professors in giving the updated situational examples in accordance to the

fast pace of economic and technological change.

For the Future Researchers: This study will serve as a guide in their

studies and may be a reference, especially those who want to continue

the research.

Scope and Limitation

The research focuses on evaluation of business policy and strategy of

Granspan Development Corporation as a driver on gaining competitive

advantage. The respondent was Ms. Ma. Ursula B. Castillo, a HR manager of

Granspan Development Corporation, located at 1904 National Road, Tagpos,

Binangonan, Rizal. The researchers prepared 20 questions based on the

objective of the research.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 7

Definition of Terms

The researchers used the following terms and define them conceptually

and operationally in view of their relative importance in this study.

1. Business Policy - is the study of the roles and responsibilities of top

level management, the significant issues affecting organizational

success and the decisions affecting organization in long-run.

2. Business Strategy - is the art, science, and craft of formulating,

implementing and evaluating cross-functional decisions that will enable

an organization to achieve its long-term objectives.

3. Competitive Advantage - is the attribute that allows an organization

to outperform its competitors. A competitive advantage may include

access to natural resources, such as high-grade ores or a low-cost

power source, highly skilled labor, geographic location, high entry

barriers, and access to new technology.

4. Corporation - is a company or group of people authorized to act as a

single entity (legally a person) and recognized as such in law.

5. Driver - element of a system that has a major or critical effect on the

associated elements or the entire system

6. Evaluation - is a systematic determination of a subject's merit, worth

and significance, using criteria governed by a set of standards.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 8

Chapter 2

STATEMENT OF THE PROBLEM

This chapter discusses the answer of Ms. Ma. Ursula B. Castillo, HR

manager of Granspan Development Corporation. Construction to the

questions formulated by the researchers in accordance with the objectives

of the study.

Specifically, this study sought to answer the following:

To determine the core of business policy and strategy procedures of

different companies.

To determine how effective business policy and strategy in gaining

competitive advantage is.

To determine the roles that Human Resource plays in creating

business policy and strategy.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 9

Questions and Answers:


1. Are there any problems that exist when formulating the company

policies? If yes, how are you able to solve it?

Yes, we encounter problems while were formulating the company

policies. Any company, big or small can face difficulties in devising new

policies but the assigned committee for the said policy usually conducts

meeting, brain storming and consultation before they finalize it.

2. What are the factors being considered in formulating the policies?

First, is to identify the issues that needs a development of a policy,

Second, is to appoint the correct person to manage the process, next is to

establish the policy improvement process, then we conduct research or

benchmark and we do the consultation then we create a draft policy

followed by another consultation before we come up the final policy, then

communication and lastly, implementation.

3. How do you assess the external environment in formulating your

business strategy?

There are different external environment factors that affect the

organization and its strategy, some cannot be identified immediately and

some are reported daily. Whats important is that we have assigned

people to monitor and analyze the change and ensures to have an

immediate response to it.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 10

4. How can you relate your policy to your strategy in attaining your

goals?

Our company has a strong goal to provide excellent service with our

customers locally and internationally. With these policies, we were able to

promote ethical and responsible decision making. And help us engage our

people as we set an expectations and performance objectives in order to

attain our desired target.

5. What are the specific sanctions that the employee would face in case

of violating company policies?

If the employee failure to comply with the policies and procedures may

result to disciplinary action. Example of sanctions are 1st Offense - Verbal

Reprimand, 2nd Offense- Written Reprimand, 3rd Offense 1 Day

Suspension, 4th Offense 3 Days Suspension, 5th Offense 5 Days

Suspension, 6th Offense 10 Days Suspension, 7th Offense

Termination depending on the gravity of the violation they committed.

6. How does the management ensure that the company policies are

followed by all employees?

What we do is we create / set up a committee that will help the

Management to explain well with the employees the content of the new

policy and why it has been formulated. This includes the Managers,
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 11
Officers and the Head of the Department in collaboration with the Human

Resource Department. We also do re-orientation program to keep all the

employees well informed and ensure that they will abide to the new policy

especially those who will be affected by the new formulated policy.

7. How the management does assures the validity if an employee was

reported for violating a specific policy?

The Management ensures to do the due process in every violations and

incident reports before we come up to any decision.

Well once na kasi na merong report or incident report kaming nareceive

from the HR Department basically meron tayong due process. Nagbibigay

kami ng letter to explain. So once na nakareceive kami ng incident report

from the department or sa guard or sa safety or kami yung naka discover

mismong HR, gagawa kami ng letter to explain dun sa tao.. Ibbigay niya

sa amin after 24 hours yung explanation. Then yun na done na yung due

process within the interview and investigation. Hindi kami basta basta

nagbibigay ng any disciplinary action ng walang due process.

8. What policy in your company often violated by your employees?

Timekeeping

9. What specific business policy do you have that is often performed

well or followed by your employees?

Stand Operating Procedure and Safety Policy.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 12

10. What are your companys organizational principles and values and

how do they guide you in developing your mission and vision

statement?

Grandspan Development Corporation has a clear and specific goal. The

company is determined to be the leader in steel fabrication, tubular

section, trailer manufacturing, hauling equipment and general

construction. And the corporation will accomplish this through total quality

management and at the same time promoting long term partnership with

suppliers, customers and the community.

11. How important is strategic planning in your company and how do

you stack up against other competitors? What policies do you think

you share among them and what makes you different?

Aside from it is one of the most challenging and exciting excises that an

organization can commence, it allows our organization to make

fundamental decision and thorough analysis on our existing structure,

policies, programs, etc. It allows us to decide if the organization needs

change in order to achieve the companys goal.

12. How do the policies and strategies improve the competitive

advantage of the business?

In order to improve competitive advantage of our organization, we must

think strategically. In order to be successful, the Management should be


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 13
strategically aware. Any decision or change has a big impact to the

organization and to its customers that is why, strategic planning is a

necessity. The improvement of the business involves the employee, the

leader and the whole team.

13. How do you pursue the objectives of the organization if there are

impulsive changes in the policy implementation?

We always anticipate and prepare for a sudden or unexpected change.

We provide better awareness and we are focus on our organizational

objective.

14. How do the company reacts to a new product of competitors that is

introduced to the market? How do you strategy in competing with

the same line of business?

The company has a competitive intelligence program. We are up to date

and as much as possible, if our competition has a new released product,

we study and evaluate well and come up to a more strategic planning.

15. How do you work with the resistance of the employees regarding

with the new policies that the management would like to implement?

Whenever we have new policies to be implemented, we make sure that

we involve all the employees and value their opinions.

Basically yung policies namin collaborated ito with management and with

all the department head. We explain it to all the employees. They have to
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 14
adapt to any change. They have to follow the new companys policies and

procedures.kasi if not, they will incur disciplinary action. As much possible,

inieexplain naming maagi sa mga emplayado yung change na

mangyayari. Right now wala pa naman change kasi on-process pa yung

code of discipline namin.

16. What systematic techniques and principles do you consider for

better organizing and executing the function of strategic leadership?

To analyze our organization, we do the SWOT analysis, we also do the

fish bone technique and we also look for our core competencies.

17. How do you measure the overall corporate performance?

Ang ginagawa namin, ang isa sa pinapa-improve ko right now is yung

performance evaluation. So what we do right now is yung gregrade yung

tao from 1 to 5. 5 being the highest. paano mo siya ieevaluate? Ang

pinoproprose ko ngayon is magkaroon kami ng score card na ginagawa

namin ngayon sa HR.

18. What is the impact of business policy in organizational performance

of the company?

The effect of a strategic and effective business policy can only be seen to

its overall performance.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 15

19. Change is constant and some new policies are needed to be

implemented, how does the management helps the employee/s who

opposed to accept the change in the organization?

We try to explain to the employees why do we need impose these

program or we need to impose these policies, Bakit mo kailangan sundin?

Bigyan ko kayo ng example sa Safety. Ang safety policy and procedure

mas mahigpit siya sa code of discipline namin..Mas mabigat ang

disciplinary action na binibigay ng safety kesa doon sa code of discipline

naming. Why? because sa safety, once na naaksidente yung isang tao, of

course yung manpower and may possibility madedemanda yung

company. So ang pinoproktektahan ng safety yung tao at yung kompanya

mismo. So kailangan nila ifollow kung anong procedure ng safety. Kahit

saang company mas mabigat ang policy ng safety kaysa sa don sa

existing nila ng policy and procedure sa code of discipline nila. Bakit

naming hinigpitan? Minsan hindi naiintidihan ng tao na para sa kanila din

yung paghihiigpit namin. Bakit kailangan nila maghelmet? E nasa

production sila. Bakit nila kailangan mag safety shoes? So ineexplain

namin ng maagi sa kanila. So right now, I think magkakaroon ng changes

ng safety at policies and procedure. What we do is ang plan namin is mag

conduct ng training sa kanila. Ano ba yung importance ng policy na to?

Bakit kailangan mag change yung policy? Kasi sa safety naman may mga

nacocommit na incidents ng mga empleyado na hindi naka stipulate don

sa existing policies and procedures. Kailangan ng revisions.iinput mo yung


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 16
offense. From time to time may revisions na mangyayari. Kunyari hindi ka

sumunod sa SOP tulad ng hindi pumasok ng maaga so dapat specific

yung policies and procedures.

20. Are there significant strengths, weaknesses, opportunities and

threats developing inside your company?

Yes, of course. As we do the strategic planning, we try to analyze the

problems that we encounter and its root cause.


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 17

Chapter 3

FINDINGS AND RECOMMENDATIONS

Findings

1. The company encounters problems while theyre formulating the company

policies but they resolved it by assigned committee for the said policy

conducts meeting, brain storming and consultation before they finalize it.

2. In order to improve competitive advantage of their organization, they think

strategically. The Management is strategically aware in order to assure

their successful. Also the improvement of their business involves the

employee, the leader and the whole team.

3. ..
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 18

Recommendations

1. The company must continue their procedures in formulating business

policies such as conducts meeting, brain storming and consultation before

they finalize it.

2. The company must maintain their strategic planning as they gained

competitive advantage. Also they must keep the improvement of their

business that involves the employee, the leader and the whole team.

3.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 19

APPENDICES
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 20

Request Letter
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 21

Sample Pictures after the Interview


POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 22

Financial Statement

TOTAL

EXPENSE
Transportation Expense
GROUP MEMBERS SNACKS Print PER

MEMBER

Luistro, Glaidel Anne B.


30 50 15 95

Omale, Jomari N.
80 50 15 145

Vito, Aizel Thea P.


100 50 15 165

TOTAL
210 150 45 405
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 23

GLAIDEL ANNE B.LUISTRO


245-A Williamsburg St.,Richmond
Subd.,Angono,Rizall
Mobile No: 09565540185
Email: glaidel_luistro@yahoo.com.ph
glaidelluisrro@gmail.com

Objectives: Seeking a position where I can apply my HR knowledge derived from


my degree in order to assist with HR procedures and to improve my skills in this field
for better career.

Educational Background:

Polytechnic University of the Philippines


Tertiary Bachelor of Science in Business Administration
major in Human Resource Development Management
Sta. Mesa, Manila
(On Going)

Secondary Angono Private High School


Doa Aurora St, Angono, Rizal
Graduate of Batch 2014

Elementary St. Martin Montessori School Inc.


111 First St. San Martin Subd, Angono, Rizal
Graduate of Batch 2010

On-the-job Experience:

200 hours PAG IBIG FUND


500 Shaw Zentrum, Shaw Boulevard, Mandaluyong City
April May 2017

120 hours Convergys SLC, Recruitment Hub

Ayala Ave., Makati City

April 2016
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 24

JOMARI N. OMALE
Blk. 12 Lot 117 Lupang Arenda,
Brgy. Sta. Ana, Taytay, Rizal
Mobile No: 0912-448-2930 / 0917-610-4269
Email: omalejomarin@yahoo.com
jomariomale12@gmail.com

Objectives: To enhance the knowledge I gain from school through exposing


myself in an actual job environment and to practice my skills and ability for me to
personally grow and mature. In return, I offer my service and prove my
determination to become an asset in your company.

Educational Background:

Polytechnic University of the Philippines


Tertiary Bachelor of Science in Business Administration
major in Human Resource Development Management
Sta. Mesa, Manila
(2014 - present)

Secondary Antonio C. Esguerra Memorial National High School


Sampaguita Rd. Lupang Arenda, Brgy. Sta. Ana, Taytay, Rizal
Graduate of Batch 2014

Elementary Saint Anne Learning School


Rd. 2 Lot 13 Lupang Arenda Brgy. Sta. Ana, Taytay, Rizal
Graduate of Batch 2010

On-the-job Experience:

200 hours NorthPine Land, Inc.


15th Floor, The Taipan Place, F. Ortigas Jr. Rd.
Ortigas Center, Pasig City, 1605 Metro Manila
April June 2017

120 hours Global Group Innovative Services


9th Floor, Triumph Building, 1610, Quezon Avenue, Barangay
South Triangle, Quezon City, 1103 Metro Manila
April 2016
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 25

AIZEL THEA P. VITO


2E2 Building 5, GSIS Metrohomes, Pureza St., Sta.
Mesa, Manila
Mobile No: 0915-451-3870
Email: vitoaizelthea@yahoo.com

Objectives: To enhance the knowledge I gain from school through exposing


myself in an actual job environment and to practice my skills and ability for me to
personally grow and mature. In return, I offer my service and prove my
determination to become an asset in your company.

Educational Background:

Polytechnic University of the Philippines


Tertiary Bachelor of Science in Business Administration
major in Human Resource Development Management
Sta. Mesa, Manila
(2014 - present)

Secondary Bansud National High School- Regional Science High School for
Region IV- B
Pag-asa, Bansud, Oriental Mindoro
Graduate of Batch 2014

Elementary Pag-asa Elementary School


Pag-asa, Bansud, Oriental Mindoro
Graduate of Batch 2010

On-the-job Experience:

200 hours PJ Lhuillier Inc.,


Bldg., 7850 Makati Ave., Brgy. Poblacion, Makati City
April June 2017

120 hours Convergys


Convergys 1 Building, 6796 Ayala Avenue, corner Salcedo
Street, Legaspi Village, Makati
April 2016